The closing of the second tranche resulted in gross proceeds to the company of C$1,092,800 from the sale of 2,428,442 units of the company, which, together with the first tranche of the offering has resulted in aggregate gross proceeds to the company to date of approximately C$4.45mln from the sale of an aggregate of 9,893,997 units.
The proceeds realised from the second tranche will be used for continuing working capital requirements at the company's Maracas Menchen mine, and for general corporate and working capital purposes.
Each unit was sold at a price of 45 cents and consists of one common share of the company and one-half of one common share purchase warrant. Each warrant issued in the second tranche will be exercisable into one common share at a price of 65 cents per share for a period of three years from closing of the second tranche. All securities issued in the offering will be subject to a four-month hold from the date of issuance.
An entity controlled by Alberto Beeck, a director of Largo, subscribed for an aggregate of 555,555 units under the second tranche of the offering. Pursuant to Multilateral Instrument 61-101 (protection of minority securityholders in special transactions), the purchase, by the entity controlled by Mr. Beeck, of the units under the offering, is a related-party transaction.