Largo Resources Ltd. announce that the Environmental State Council of Bahia, the Conselho Estadual de Meio Ambiente has granted the Localization License for its Maracas Vanadium Project, in Bahia State, Brazil. The approval was confirmed today by publication in the Official Gazette of the state of Bahia.
Stated Mark Brennan, President and CEO of Largo Resources, “I am very proud of our technical team for achieving this milestone. The team has taken an asset with a non-compliant resource and has received the critical permit within two and a half years. ” He added, “The Company will now explore financing opportunities and complete the required work for obtaining the Installation License.”
There are three licenses issued by CEPRAM that are necessary to bring a mine into production in the state of Bahia (Brazil).
The Localization License (“LL”) is the most critical license. Receipt of this license allows the rest of the licensing process to proceed, and confirms that the project can be “located” (hence “localization license”), developed and operated as proposed. The Environmental Impact Assessment (EIA) and Environmental Impact Report (RIMA) are completed as part of this process. The process for obtaining the LL involved the participation of the public and any NGOs who wished to participate through public meetings. The Instituto do Meio Ambiente (IMA), the Bahia state environmental agency, hosted these meetings in February 2009 in Maracas and Porto Alegre, which are two towns located in the vicinity of the project site. Following this, IMA submitted the project to Conselho Estadual de Meio Ambiente (CEPRAM), an independent body, who at their April 2009 monthly meeting endorsed IMA’s recommendation that the LL be granted. The LL is a very critical step in the environmental permitting process and concludes the active participation of the public.
The Installation License (LI) involves an approval process involving only Largo and the aforementioned government agencies. The process includes the submission of more details of the project and a detailed description of the proposed environmental management system that was outlined in the LL documentation previously submitted.
The Operating License (LO) is granted during the final stages of commissioning and involves a site inspection by IMA, with the likely participation of CEPRAM, to confirm that the project has been constructed as planned and in accordance with the LI.
In addition, Largo announces that it has granted a total of 4,225,000 options to various officers, directors, consultants and employees under the stock option plan of the Company. The exercise price for the options will equal the closing price for Largo common shares on the TSX Venture Exchange on May 15, 2009. The options will have a five-year term and will vest immediately subject to the four month regulatory hold period. The grant of options remains subject to regulatory approval.