Largo prices $23.4 million equity offering amid financial difficulties

Largo Inc. (TSX: LGO) (NASDAQ: LGO) announced it has entered into securities purchase agreements for a $23.4 million equity offering consisting of a registered direct offering and concurrent private placement.

The company will issue 14,262,309 common shares at $1.22 per share in the registered direct offering for gross proceeds of $17.4 million. In a concurrent private placement, Largo will issue warrants to purchase up to 14,262,309 common shares at an exercise price of $1.22 per warrant, exercisable immediately upon issuance and expiring five years from issuance.

Arias Resource Capital Fund III L.P., an affiliate of Largo's largest shareholder, has agreed to provide $6 million in financing through the acquisition of 4,918,033 common shares and 4,918,033 warrants on the same terms. A portion of this commitment may be advanced through a $5 million secured convertible bridge loan carrying a 12% annual interest rate, secured against shares of wholly owned subsidiary Largo Resources (Yukon) Ltd.

The company stated that proceeds will be used to make payments to Brazilian lenders and the mining contractor at the Maracás Menchen Mine, noting that liquidity constraints are already negatively impacting mine production rates. Bridge loan proceeds would sustain working capital until 2026.

Largo has applied to the Toronto Stock Exchange for exemptions from various requirements, citing "serious financial difficulty." The company stated that if the TSX does not approve the exemption, securityholder approval will be required before the offering can be completed.

The closing is expected to occur on or about October 22, 2025, subject to satisfaction of closing conditions and TSX approval. H.C. Wainwright & Co. is acting as sole placement agent for the offering.

Largo operates the Maracás Menchen Mine in Brazil, producing vanadium and ilmenite products.

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