Largo Resources Ltd. (LGO:TSX) announced in a news release it decided to terminate its 2008 offtake agreement with Glencore International and has notified it accordingly. The existing agreement will now expire on April 30, 2020.
That offtake agreement with Glencore afforded Largo the initial capital it needed to construct the Maracás Menchen mine in Brazil and allowed it to concentrate entirely on producing high-purity vanadium.
In other news, Largo appointed Paul Vollant as director of sales and trading. He will continue developing those now critical areas.
"This transition marks a transformative moment in the company's history, and we will continue to focus on maximizing value for all of our shareholders with the new sales and trading business," Largo CEO Mark Smith said in the release.
"Largo remains one of the lowest-cost vanadium producers in the industry with an established track record of operational performance highlighted by the company's new monthly V2O5 production record of 1,042 tonnes in July and global V2O5 recoveries of 80.9% exiting Q2 2019," Smith stated.
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