"Our current offtake agreement was instrumental in securing the initial financing for the construction of the Maracás Menchen mine,” Largo Resources’ chief executive officer Mark Smith said in a statement.

Largo will continue to develop its own internal sales and trading business, headed by Paul Vollant, with a focus on premium applications requiring high-purity V2O5.

The original offtake was signed in May 2008.

During that time, V2O5 traded at all-time highs of $28.50-29.15 per lb in November 2018 amid concerns over supply to meet new rebar regulations in China; and multi-year lows during a period of weak demand in 2016, according to Fastmarkets’ benchmark price assessment for V205, 98% V205 min, in-whs Rotterdam. Prices were last assessed at $6.80-7.50 per lb on August 16.