Largo Resources (CVE:LGO) has received yet another accolade for its Maracas vandium project, getting Latin Financemagazine's best mining finance award for the funding of the asset last year, with the magazine citing "the novel nature of the non-recourse financing structure", as well as difficult market conditions and unique aspects of the project and its chief commodity.
The total R$556 million transaction, which was led and financed entirely by Brazilian banks, was completed in June of 2012. The Brazilian property is the first Greenfield mining project ever to be fully funded by Brazilian banks, according to Largo.
"We are quite honored to continue to receive accolades from the project finance community," said president and CEO of Largo, Mark Brennan, in emailed comments. "Although the financing was completed in June 2012, I think this serves as a great reminder of the significance of this accomplishment to our team, financiers and our shareholders."
"The environment has been, and continues to be, extremely tough for mining companies - particularly for the juniors. So, the fact that we received funding, as a junior miner, in a non-traditional commodity, really speaks to the exceptional quality of the Maracas asset and the team that is developing it."
The Canadian strategic mineral company's primary focus is to continue to advance its flagship Maracas vanadium project with the company targeting a production start date in first quarter of next year. The project, which is fully funded, permitted and in construction, is slated to be the world's "premier producer of vanadium", according to the company, due to its high grade and low operating costs.
In a recent company update, Largo said the majority of system areas at the Maracás project remain on track for commissioning in the fourth quarter of the current calendar year. The 27,000-hectare property is located 813 kilometres northeast of Brasilia, the capital of Brazil, and 250 kilometres southwest of Salvador, the capital of Bahia State.
The news, released in a statement late Monday, follows another award earlier this year, when Largo was named the recipient of Project Finance magazine's Latin American Mining and Metals Deal of the Year, 2012.
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