Largo Confirms $6 Million Secured Borrowing to Bolster Operating Funds
Largo Inc. Secures $6 Million Loan Amid Vanadium Price Weakness
Largo Inc., a leading global producer of primary vanadium and critical materials, has secured a $6 million loan from ARG International AG to bolster its financial position and maintain operational flexibility amidst continued pressure from low vanadium prices.
The loan, a secured promissory note, carries a six-month term, an annualized interest rate of 15%, and a 1% arrangement fee. The loan is secured against Largo Inc.'s 65.7% equity stake in Largo Physical Vanadium Corp.
According to Interim CEO Daniel Tellechea, the loan strengthens Largo's working capital position, providing the necessary flexibility to manage price pressures while focusing on operational targets for the year. This borrowing reflects the company’s strategic response to the challenging market environment for vanadium, allowing it to maintain stability and continue executing efficiency improvements while facing low commodity prices.
The loan is expected to provide working capital support as Largo Inc. transitions from turnaround execution to steady-state operations. This move is crucial as the company navigates the current market conditions, aiming to sustain and improve operations during the vanadium price weakness.
Largo Inc. is one of the world's largest primary vanadium producers, supplying high-quality vanadium and ilmenite products to various global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The company's common shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol "LGO".
The loan was announced as the company continues to demonstrate its resilience in the face of market challenges. Largo Inc. is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its Maracás Menchen Mine in Brazil.
It is important to note that forward-looking statements in this press release are based on the opinions and estimates of management as of the date such statements are made, and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. An early warning report related to the loan will be electronically filed on www.sedarplus.com and www.sec.gov. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
For further information, investors are encouraged to contact Largo's Investor Relations.
References:
- Company Website
- SEC Filing
- SEDAR Filing
- Press Release
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