According to a statement from the company, the agreement covers the sale of 4.5 million tonnes of iron ore calcine that has been stockpiled over the past 11 years at the Maracás Menchen mine in the Maracás region of Bahia state.
Largo’s Co-CEOs, Alberto Arias and Daniel Tellechea, said the agreement demonstrates external demand for the company’s by-products, stating: “This binding preliminary agreement highlights the strategic value of materials obtained as by-products of our operations and offers an opportunity to further strengthen the cost competitiveness of our vanadium business.” While aiming to generate revenue from its by-product inventory, including iron ore and titanium, the company intends to maintain stability in its core focus area of vanadium production.
Largo noted that the agreement is subject to final documentation, revisions to certain commercial terms, and customary closing conditions.
Following the announcement, Largo shares rose by up to 7.1% to CAD 1.55 on the Toronto Stock Exchange (TSX), bringing the company’s market capitalization to approximately CAD 126.6 million (USD 92 million).
As one of the world’s leading primary producers of vanadium, Largo plays a significant role in supplying critical minerals to the steel, aerospace, defense, chemical, and energy storage sectors. Production at the Maracás Menchen mine—widely regarded as one of the world’s highest-quality vanadium resources began in 2014 and is expected to continue for more than 30 years.
Vanadium is typically found in magnetite iron ore deposits and is generally extracted as a by-product rather than as a primary mineral.
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