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Highlights
- Largo received a binding term sheet covering the potential monetization of 4.5 million tonnes of iron ore calcine accumulated at its Brazilian mine.
- The proposed multi-year EXW contract could generate cash proceeds in excess of USD 56 million, subject to final agreements and conditions.
- The material forms part of Largo’s long-standing byproduct inventory generated during vanadium production at the Maracás Menchen mine.
Largo Inc. (TSX:LGO) (NASDAQ:LGO) reported that the binding term sheet covers approximately 4.5 million tonnes of iron ore calcine material produced as a byproduct during 11 years of vanadium mining and processing activities. The material has been stockpiled at the Company’s Maracás Menchen mine in Maracás, Bahia, Brazil.
According to the Company, the term sheet was received by its Brazilian operating subsidiary and relates specifically to the potential sale and delivery of this accumulated material. The iron ore calcine was generated alongside Largo’s primary vanadium operations and has remained on site as part of long-term stockpiling activities.
Commercial Framework and Potential Proceeds
The binding term sheet outlines a proposed multi-year Ex Works (EXW) contract structure. Under the current framework, the arrangement could result in potential cash proceeds exceeding USD 56 million. Completion of the transaction remains subject to the negotiation and execution of final documentation, amendments to certain commercial terms, and the satisfaction of customary closing conditions.
Largo stated that there is no assurance that a final transaction will be completed or that it will be completed under the terms currently contemplated. The Company indicated that it will provide updates as developments occur.
Focus on Byproduct Inventory
The iron ore calcine forms part of Largo’s broader portfolio of vanadium-related byproducts, which also include materials containing titanium and other mineral components. These byproducts are produced during the extraction and processing of vanadium ore at the Maracás Menchen mine.
Over more than a decade of operations, Largo has accumulated several stockpiles of byproduct and processing residue materials. The Company noted that these materials represent inventory that may be suitable for reprocessing, commercialization, or alternative uses, depending on market conditions and technical considerations.
Operational Context and Corporate Overview
Largo is a global supplier of vanadium and ilmenite products sourced from its Maracás Menchen mine. The Company serves multiple end markets, including steel, aerospace, defense, chemical, and energy storage sectors. In addition to its core mining operations, Largo holds a 50% interest in Storion Energy, a joint venture focused on electrolyte production for vanadium flow battery energy storage systems in the United States.
The Company also maintains full ownership interests in the Northern Dancer Tungsten-Molybdenum property in Canada’s Yukon Territory and the Currais Novos Tungsten Tailing Project near Natal, Brazil. Preliminary economic assessments for both assets were completed in 2011.
Market Update
Largo’s common shares last traded at CAD 1.58 per share on January 5, 2026.
