September 25, 2013
Largo Resources’ Maracás Vanadium project financing in Bahia, Brazil, was notable for having introduced a guaranteed, non-recourse loan structure to the marketplace.
The deal, financed by Brazilian state development bank, BNDES, helps pave the way for further non-recourse transactions in the country. That point — in addition to its success despite Largo Resources’ status as a junior sponsor with no local relationship history and in the face of the challenges posed by the lack of a forward price for vanadium — marked the transaction out as Best Mining Financing.
Those factors also gave the deal an edge over Trafigura Mexico’s $380 million syndicated loan signed in March
Sponsor Largo Resources employed a novel structure when it financed construction of a production facility for a mineral which is equally unusual in Latin America