LARGO RESOURCES ANNOUNCES $5.1 Million FLOW THROUGH PRIVATE PLACEMENT FINANCING

Written by on July 24th, 2009

Largo Resources Ltd. has agreed to sell 5.1 million flow-through units at a price of 10 cents per unit. Each unit will comprise one flow-through common share and one-half of one share purchase warrant. Each warrant shall be exercisable for one common share at a price of 15 cents at any time prior to the date that is 18 months from the date of issue.

Upon closing of the financing, Largo shall pay First Canadian Securities a 6-per-cent cash finder’s fee and 180,000 compensation options. Each compensation option will entitle First Canadian Securities to acquire one compensation unit at a price of 10 cents per compensation option exercised at any time prior to the date that is 18 months from the date of issue. Each compensation unit shall comprise one non-flow-through common share and one-half of one warrant.

Closing of the offering is anticipated to occur on or before July 30, 2009, and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

The flow-through shares will be subject to resale restrictions for a period of four months plus one day from the closing date.

The gross proceeds from the offering will be used for eligible Canadian exploration expenses that qualify as Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and will be renounced for the 2009 taxation year.

For Full release see www.LargoResources.com

LGO TSX.v

 

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