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Largo receives $56m binding term sheet for the sale of 4.5Mt of iron-ore calcine

5th January 2026

By: Sabrina Jardim

Senior Online Writer

     

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TSX-listed Largo has announced that its Brazilian operating subsidiary has received a binding term sheet related to the potential monetisation of 4.5-million tonnes of iron-ore calcine material that was produced as a byproduct and accumulated in a stockpile over the past 11 years of vanadium production at the company’s Maracás Menchen mine in Bahia, in Brazil.

In a media release, Largo explains that the binding term sheet provides for a multi-year Ex Works (EXW) contract for potential cash proceeds in excess of $56-million, subject to final documentation, amendments to certain commercial terms and customary conditions.

The company says it 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.

The company says 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 says it has accumulated several stockpiles of byproduct or processing residue material, representing a significant inventory available for reprocessing and/or commercialisation.

“This binding term sheet reflects external demand for materials generated as byproducts from our operations and highlights the strategic value of Largo’s byproduct inventory as a way to enhance further the cost-competitiveness of our vanadium business,” says Largo co-CEOs Alberto Arias and Daniel Tellechea.

“We believe this approach provides a constructive path to realising value from assets already on hand, while supporting our broader financial and operational objectives.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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