08:42 AM EDT, 08/11/2025 (MT Newswires) -- Largo (LGO.TO) said Monday that it entered a US$6 million secured loan through a promissory note with ARG International. The company said it plans to use the funds to support working capital support as it "transitions from turnaround execution to steady-state operations" amid low vanadium prices.

The note is secured against Largo's 65.7% equity interest in Largo Physical Vanadium ( VANAF ) . The note has a term of six months, bears interest at an annualized rate of 15%, and includes a 1% arrangement fee.

"This loan strengthens our working capital position at a time when our operations have stabilized but market pricing conditions remain challenging," said Daniel Tellechea, Largo's interim CEO. "We've made meaningful progress on production and cost efficiencies, and this facility is expected to provide some flexibility to manage through current price pressures while continuing to focus on meeting our set targets for the year."

Largo's share price closed 2.8% lower on Friday to $1.75 on the TSX.