Largo prices private offering at 50 cents per unit

2008-05-26 09:50 ET - News Release

Mr. Mark Brennan reports

LARGO RESOURCES LTD ANNOUNCES PRIVATE PLACEMENT FINANCING

Largo Resources Ltd. has agreed to the pricing for its previously announced private placement of units. Cormark Securities Inc. is lead agent on behalf of a syndicate of agents comprised of Fraser Mackenzie Ltd., Macquarie Capital Markets Canada Ltd. and Clarus Securities Inc.

The offering will consist of 20 million units at a price of 50 cents per unit. Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder thereof to purchase one common Share for a period of 12 months following the closing date at a price of 75 cents per share.

Largo has also granted the agents an option to increase the offering by up to an additional three million units at the offering Price. The agent's option is exercisable at any time up to two business days prior to closing.

Closing of the offering is anticipated to occur on or before June 12, 2008, and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

The common shares and common shares issuable upon exercise of the warrants will be subject to resale restrictions for a period of four months plus one day from the closing date. The agents will receive a commission of 6 per cent of the gross proceeds raised in the offering. The agents will also receive broker warrants equal to 6 per cent of the number of units sold. Each broker warrant will entitle the agents to purchase one share at the offering price for a period of 12 months following the closing date.

The proceeds of the financing will be used for repayment of a convertible note facility and for working capital purposes.

We seek Safe Harbor.