Savannah Resources raises £2.24m at 5.25p a share

Savannah Resources' shares are down 8% after it raised roughly £2.24m, before expenses, from both new and existing investors.

This sum was raised via a placing of 29.6m new shares and subscription for 13.1m new shares at a price of 5.25p each, the resource development company said.

The funds would be predominantly used to support the development of Savannah's asset portfolio and for general working capital purposes.

It said letters of intent had been received from a director and major shareholder Al Marjan Ltd for an extra £1.01m cash ordinary shares at the placing price, once the company had exited its current close period.

At 13:27 GMT, shares in AIM-listed Savannah were down 8% to 5.75p each.