Largo Inc. has executed a definitive debt-restructuring agreement with Caixa Econômica Federal and extended its US$6.0 million promissory note with ARG International AG to February 2028.

The definitive agreement follows a binding term sheet announced in August 2026 to restructure US$82.2 million in commercial bank debt for the Maracás Menchen Mine in Bahia, Brazil. Largo expects to execute similar definitive agreements with its remaining bank lenders in the near term, alongside formal security and intercreditor documentation.

Alongside the debt restructuring, Largo has launched a new cash-generation stream from copper-platinum group metal concentrate production. Following regulatory approval from Brazil's National Mining Agency in August 2026, initial sales of the concentrate to two trading companies and a European smelter are expected to generate approximately US$4.7 million in cash proceeds during September 2026.

To mitigate elevated input costs, including diesel and sulfuric acid, the company is renegotiating key supplier and contractor agreements and implementing cost-reduction measures. Largo is also reducing accumulated inventories by temporarily lowering mining rates and processing previously mined stockpiles. Due to these operational adjustments, the company expects its 2026 vanadium production to land toward the lower end of its previously announced guidance range.

In commercial developments, the company is shifting a greater proportion of its 2027 sales mix toward high-purity vanadium products. The first shipment under Largo's five-year contract with the U.S. Defense Logistics Agency is scheduled to arrive at a U.S. port in late September 2026.

At the Maracás Menchen Mine, an updated pre-feasibility study completed in November 2021 outlined a 20-year mine life and a $2.0 billion after-tax net present value for its vanadium-titanium operations. Additionally, Largo holds a 37.4% interest in Storion Energy, a joint venture with Stryten Energy focused on establishing domestic electrolyte production for vanadium flow batteries in the United States.

Read the full announcement: Largo Provides Financial, Operational and Commercial Updates