Largo Inc. and its operating subsidiary, Largo Vanádio de Maracás S.A., have entered into a binding term sheet to restructure approximately US$82.2 million in outstanding commercial bank debt for the Maracás Menchen Mine in Bahia, Brazil.

The agreement extends the final maturities of the commercial bank debt from September 2026 to March 2030. Under the revised terms, the arrangement incorporates a six-month principal amortization grace period, followed by 36 months of quarterly principal amortization, with interest payable monthly.

The restructuring remains subject to the negotiation and execution of definitive documentation, including settling the interest rate, documenting the collateral package, and satisfying customary closing conditions.

The debt rescheduling provides the company with extended financial runway to advance its operational plans at the Maracás Menchen Mine. This includes ramping up copper-platinum group metal concentrate production and preparing for the first shipment of high-purity vanadium pentoxide under a US$60 million delivery order with the U.S. Defense Logistics Agency, with deliveries extending through January 2030.

“The extension of our debt maturities from September 2026 to March 2030 gives the Company greater runway as we focus on improving operational performance and cash generation at the Company. We are focused on tariff-free high-purity vanadium sales, including to the Defense Logistic Agency, increasing revenues from the sale of copper, gold, platinum and palladium by-products and increasing operating efficiencies across the whole organization. Our priority now is to execute against these operational initiatives and build sustainable momentum across the business.”

— James Bannantine, Co-Chief Executive Officer of Largo

Co-Chief Executive Officer James Bannantine noted that the extended runway will support ongoing efforts to improve operational performance and cash generation across the organization.

Read the full announcement: Largo Secures US$82.2 Million Debt Restructuring, Extending Maturity to 2030