Largo inc. (TSX: LGO) (NASDAQ: LGO) announced that Column Capital Corp (CPC) has received conditional approval from the TSX Venture Exchange (TSXV) in respect of its qualifying transaction with Largo Physical Vanadium (LPV) pursuant to Policy 2.4 – Capital Pool Companies of the TSXV. In connection with the Transaction and pursuant to TSXV requirements, CPC has filed a filing statement dated September 13, 2022 (the “Filing Statement”) on SEDAR (www.sedar.com).
Once TSXV provides receipt of customary post-closing documentation, the LPV common shares (the “Common Shares”) will commence trading on the TSXV under the symbol “VAND”. Largo expects that the post-closing documentation will be completed by the end of September 2022.
Paulo Misk, President and CEO of Largo commented:
“Completion of the Qualifying Transaction represents an important milestone for Largo, LPV and the vanadium sector. Leveraging the unique characteristics of vanadium, prospective investors are now provided with a new vehicle to invest in physical vanadium and gain exposure to the long-term fundamentals of the commodity – a key transition metal for greener steel, strategic and energy storage industries.”
“Through the segregation of vanadium, a key cost component of vanadium redox flow batteries (“VRFB”), LPV intends to enhance the adoption of VRFBs by prospective customers in the long duration energy storage market and thus, grow vanadium demand in the future.”
LPV aims to provide a secure, convenient and exchange-traded investment alternative for investors interested in having direct exposure to physical vanadium and not speculating with regard to short-term changes in vanadium prices. LPV will offer pure-play exposure to vanadium wand will initially hold approximately 200 mt of vanadium pentoxide equivalent contributed by Largo in connection with the Qualifying Transaction (the “Largo Contribution-in-Kind”) and further vanadium to be acquired with the proceeds of its CAD $30,220,000 subscription receipt financing that closed on April 14, 2022 (the “Financing”).
LPV will acquire and store vanadium units in commercial forms as well as in electrolyte solutions for VRFB applications due to the unique non-degradation characteristic of the metal.
Largo will provide services to LPV pursuant to a safekeeping agreement, supply agreement technical advisory agreement, each effective on completion of the Qualifying Transaction. In addition to the vanadium contributed pursuant to the Largo Contribution-in-Kind, under the supply agreement Largo has granted LPV a right of first refusal over any non-committed commercial vanadium equivalent products from January to September of each fiscal year. LPV will also benefit from its relationships with Sprott Capital Partners LP and Term Oil Inc. through an advisory services agreement effective on completion of the Qualifying Transaction.
Largo Inc. is a market awareness client of Capital 10X.
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