Largo Inc. announced that its wholly owned subsidiary, Largo Resources USA, entered into a non-recourse factoring facility dated June 10, 2025, with a third-party factoring company. This facility allows LUSA to sell eligible accounts receivable for receipts of up to $10 million.
Under the terms, the Factor will advance 85% of the invoice value, with commission rates ranging from 0.51% to 1.37% depending on customer payment terms. All factored invoices are on a non-recourse basis, meaning the Factor assumes the credit risk.
This facility is expected to accelerate liquidity by monetizing receivables tied to vanadium shipments, which typically take 30 to 90 days to convert to cash. It aims to better align cash inflows with expenditures and provide additional flexibility to support day-to-day operations during the company's operational turnaround plan.
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