Funds managed by Arias Resource Capital Management LP (ARC funds) purchased an aggregate of 91,157,202 units in the second tranche for gross proceeds to the company of C$15.9mln.
Each unit was sold at a price of C$0.175 and consists of one common share of the company and one-half of one common share purchase warrant. Each warrant issued pursuant to the second tranche of the offering will be exercisable into one common share at a price of 29 Canadian cents per share for a period of five years from closing of the second tranche.
The second tranche of the placement netted $23.35mln, following around $3.5mln placed in the first tranche in January.
On Thursday, 1 US dollar equated to C$1.34.
Largo Resources shares were up 11.1% at C$0.25.