Savannah Resources raises £1.3m in placing

Savannah Resources announced on Monday that it raised approximately £1.3m before expenses through the subscription of 25,085,954 new ordinary shares at a subscription price of 5.25p per ordinary share, and the issue of one warrant per two subscription shares, having an exercise price of 6.0p, with both new and existing investors.

The AIM-traded firm said the funds would be used predominantly to support the development of the newly-acquired lithium projects in Portugal, with drilling due to commence in the coming weeks at Mina do Barroso.

It would also go towards the continued progression of the “world-class” Mutamba Heavy Mineral Sands Project in Mozambique.

The board said the tender process there was underway, to commission a group to undertake the pre-feasibility study.

Savannah added that the advancement of the Block 4 and 5 copper projects in Oman into production was also a priority for the funding, with mining expected to commence in the first half of 2018, with the remainder going towards general working capital purposes.

“Following the recent acquisition of our very exciting lithium projects in Portugal, we have augmented our funds with this capital raising, which was strongly led by our largest shareholder Al Marjan,” said chairman Matthew King.

“We are excited that a drilling programme at our Mina do Barroso mining licence will start in the next few weeks and look forward to providing shareholders with further updates as appropriate.”