Largo Resources Announces Expiration Of Its Vanadium Off-Take Agreement And Commences Full Commercial Control Of Its Own Vanadium Production
Highlights:
* Strategic sales and marketing transition proven successful: Over 85% committed on guided annual sales for 2020
* Sales and trading team fully operational out of its two commercial offices in Dublin, Ireland and Washington DC, USA.
* The Company announced the launch of VPURE™ and VPURE+™, newly developed brands for the Company’s vanadium products in January 2020
Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) announces that in accordance with its notice given on August 20, 2019, the Company’s off-take agreement with Glencore International AG has expired effective April 30, 2020.
Paulo Misk, President and Chief Executive Officer for Largo, stated: “Largo continues to remain one of the lowest-cost vanadium producers in the world with an established industry reputation for its high-quality vanadium products. Following the expiration of its off-take agreement, the Company’s sales and trading team is fully dedicated to the promotion and sales of Largo’s products. We have assembled a very strong commercial team at Largo who have committed approximately 85% of the Company’s annual guided sales for 2020. We expect the balance of production will be sold in the spot market and be used to build safety stocks in strategic regional hubs.”
He continued: “The Maracás Menchen Mine has a proven track record of premium product quality and operational stability, which allows the Company to provide its customers with a reliable source of vanadium pentoxide for the global steel and high purity markets. We believe this transition will be very beneficial economically and strategically for Largo and marks a transformative moment in the Company’s history. We look forward to maximizing value for all of our shareholders as the industry preferred producer and supplier of vanadium.”
He concluded: “We would like to thank Glencore for its support over the past six years. Their off-take agreement was helpful in obtaining debt funding for the project construction and allowed Largo Resources to evolve from a highly leveraged start-up Company to one of the world’s largest and most competitive producers of vanadium with a strong financial position. Our Company today becomes an even more important player in the global vanadium industry due to its commercial independence.”
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