Largo Inc. announced it has entered into a secured loan by way of a promissory note with ARG International AG for a principal amount of $6 million (CAD$8.25 million). This loan is intended to provide near-term working capital support for the company.
The note has a term of six months and bears interest at an annualized rate of 15%, including a 1% arrangement fee. It is secured against Largo’s 65.7% equity interest in Largo Physical Vanadium Corp.
The proceeds from this loan are aimed at strengthening Largo’s liquidity position and providing flexibility to continue executing its plan to improve operations. This comes amidst continued pressure from low vanadium prices and the company's transition from turnaround execution to steady-state operations.
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