Savannah Resources raises £1.01m in subscription

Savannah Resources announced on Thursday that, further to its recent cash placing and subscription to raise £2.24m, announced on 22 February, the company's chairman Matthew King and it major shareholder Al Marjan had now subscribed for 19,205,564 new ordinary shares at a price of 5.25p each, raising cash proceeds of £1.01m.

The AIM-traded company said in addition, it granted options over 10,700,000 ordinary shares, and was to issue a further 1,688,870 ordinary shares in the company in relation to employee remuneration.

Under the subscription, Al Marjan was to maintain its shareholding of 29.99% with a cash subscription of £998,292.

Savannah's chairman, Matthew King, was subscribing for £10,000 worth of subscription shares, increasing his total holding to 818,314 ordinary shares, representing 0.16% of the company's enlarged total issued share capital.

“As previously announced, the net proceeds of the subscription will be used by the company predominantly to support the development of its asset portfolio and for general working capital purposes,” the board said in a statement.

Those purposes included the delivery of Mineral Resource updates, licensing documents, and a scoping study at its Block 4 and 5 copper projects in Oman.

They also included the continued development of the Mutamba Heavy Mineral Sands Project in Mozambique, with scoping and environmental studies currently underway, and the definition of drill targets at its lithium projects in Finland.