Largo Resources Ltd. agreed to repurchase and retire US$47.8 million of its 9.25% senior secured notes due in 2021 in consideration for US$51.2 million in cash.

The company said Dec. 31 that the outstanding principal amount will be US$45 million, representing a 51% decrease to its current outstanding notes.

Largo Resources CEO Mark Smith noted that the transaction will result in the company reducing its total outstanding notes by about 70% since May.

The company recently spent US$27.4 million to repurchase US$26 million of the notes, reducing the outstanding amount to US$92.8 million.

Largo Resources' main focus is the Maracas Menchen vanadium mine in Brazil.