VANCOUVER (miningweekly.com) – TSX-listed vanadium producer Largo Resources has closed the first tranche of a private placement of units totalling C$3.36-million.
The Toronto-headquartered company sold 7.5-million units in the first tranche, with funds managed by Arias Resource Capital Management buying 5.8-million units for an investment of C$2.61-million.
The proceeds realised from the first tranche will be used for ongoing working capital requirements at the company's Maracás Menchen vanadium mine, in Brazil, and for general corporate and working capital purposes.
Each unit was sold at a price of C$0.45 and consists of one common share of the company, and one-half of one common share purchase warrant. Each warrant will be exercisable into one common share at a price of C$0.65 a share for a period of three years from closing of the offering.
Largo expects to close a second smaller tranche of about C$825 000 on or about September 7, which would bring the total proceeds to about $4.18-million.