VANCOUVER (miningweekly.com) – Vanadium producer Largo Resources has reached an agreement in principle with its lender Banco Pine to convert and restructure about $33-million of debt facilities, the company said on Monday.
The Toronto-headquartered miner advised that its subsidiary, Vanádio de Maracás, signed a nonbinding term sheet with Banco Pine to convert an existing $4.43-million credit facility to common shares of the company. The parties will also renegotiate the repayment schedule for a Largo-guaranteed $23.3-million credit facility, including accrued interest, between Vanádio and the lender, which will result, upon fulfilment of certain payment milestones, in the long-term restructuring of the Brazilian real-denominated facility.
"We believe that the proposed restructuring of these facilities will result in a debt profile that enables the company to more accurately match its future cash flows with its debt servicing obligations. This foundation, along with our world-class resource, will ensure the future success of Largo as vanadium prices continue to rise,” stated president and CEO Mark Smith in a news release.