Largo receives $56M binding term sheet for sale of 4.5M tons of iron ore calcine

Largo (LGO) announced that its Brazilian operating subsidiary has received a binding term sheet related to the potential monetization of 4.5M tons of iron ore calcine material that was produced as a byproduct and accumulated in a stockpile over the past 11 years of Largo’s vanadium production at the company’s Maracas Menchen mine in Maracas, Bahia, Brazil. The binding term sheet provides for a multi-year Ex Works contract for potential cash proceeds in excess of $56M, subject to final documentation, amendments to certain commercial terms, and customary conditions. The company views this term sheet as an opportunity to unlock value from accumulated materials, reduce future infrastructure requirements for stockpiles and reduce disposal costs while maintaining focus on its primary vanadium business. This binding term sheet underscores market interest in Largo’s diversified vanadium byproduct portfolio, which includes materials containing iron ore, titanium, and other mineral components produced alongside the company’s core vanadium operations. Through its mining and ore processing activities in the past 11 years, Largo has accumulated several stockpiles of byproduct or processing residue material, representing a significant inventory available for reprocessing and/or commercialization.