Largo Secures a $6 Million Bank Loan for Work Capital Reinforcement
Largo Inc., a globally recognized supplier of high-quality vanadium and ilmenite products, has entered into a secured loan agreement of $6 million with ARG International AG.
The key financial terms and conditions of this loan are as follows:
- Principal amount: $6 million USD (approximately CAD$8.25 million)
- Security: The loan is secured by Largo's 65.7% majority equity interest in Largo Physical Vanadium Corp.
- Term: Six months
- Interest rate: 15% annualized
- Arrangement fee: 1% of the loan amount
This loan is intended to support working capital needs and provide liquidity and operational flexibility during ongoing low vanadium price conditions. The interim CEO, Daniel Tellechea, highlighted that the financing provides flexibility to manage price pressures while focusing on meeting production and cost-efficiency targets for the year.
As Largo transitions from turnaround execution to steady-state operations amid challenging market conditions, this loan aims to strengthen its liquidity position.
An early warning report will be electronically filed and can be accessed on sedarplus.com and sec.gov.
It is important to note that forward-looking statements contained in this press release may not materialize as expected due to various risks, uncertainties, and factors. Readers are advised to review the risks and uncertainties sections of Largo's annual and interim MD&A.
For further information, please contact Alex Guthrie, Director, Investor Relations, who can be reached at 1.416.861.9778 or [email protected].
Largo trades on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol "LGO". The company is strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy. Largo is one of the world's largest primary vanadium producers, sourced from its world-class Maracás Menchen Mine in Brazil.
[1] Loan amount [2] Term and security [3] Interest rate and arrangement fee [4] Purpose of the loan [5] Impact on operations and targets for the year
This $6 million loan, secured by Largo's majority equity in Largo Physical Vanadium Corp., aims to provide working capital and improve liquidity during the low vanadium price conditions. The loan term is six months, and it comes with an annualized interest rate of 15% and an arrangement fee of 1%. This financing allows the company to manage price pressures while focusing on operating efficiently, meeting production targets, and maintaining cost-efficiency this year.
