# Savannah Resources Plc Successful oversubscribed Fundraise for resource definition drilling at the Mina do Barroso

- Link: https://www.directorstalkinterviews.com/savannah-resources-plc-successful-oversubscribed-fundraise-resource-definition-drilling-mina-barroso/412748658
- Published: 2018-04-03T07:23:12+01:00
- Author: Giles Arbor

**Savannah Resources plc** (LON:SAV), the AIM quoted resource development company,
announced today that it has raised approximately £1.52 million cash (before expenses)
through the subscription by both new and existing investors (the ‘Subscription’)
for 27,636,361 new ordinary shares of 1p each (‘Ordinary Shares’) at a placing price
of 5.5p per ordinary share (‘Subscription Shares’). The Company has received letters
of intent for a further £0.58 million giving gross proceeds of £2.1 million (together
with the Subscription, the ‘Fundraise’).

**HIGHLIGHTS:**

· Subscription has raised gross proceeds of approximately £1.52 million cash in 
oversubscribed fundraise

· Letters of intent received from a Directors’ related party (Al Marjan Ltd) for
an additional £0.565 million cash for new shares once the Company has exited its
current close period

· Funds to be used to advance Savannah’s project pipeline:

o continue resource definition drilling and scoping study at the Mina do Barroso
Lithium Project in Portugal as the Company fast-tracks it to a decision to mine;

o continue activities to commence copper mining in Oman later this year; and

o advance the Preliminary Feasibility Study for the world-class Mutamba Heavy Mineral
Sands Project in Mozambique.

> **David Archer, Savannah Resources plc Chief Executive Officer said today,** “
> The oversubscribed Fundraise evidences the continued strong support from both 
> our cornerstone shareholder, Al Marjan Ltd, and from a number of other existing
> and new shareholders. The funds raised will be principally directed to continuing
> resource definition drilling of the Mina do Barroso Mining Lease in Portugal, 
> so that we can build upon the existing Mineral Resource of 9.1Mt at 1.03% Li₂O,
> containing 94,100t of Li₂O. Alongside this we are undertaking further metallurgical
> test work and are focussed on completing the Scoping Study being undertaken by
> Hatch. We believe the project has the potential to be the first significant lithium
> producer in Europe.”

**Details of the Fundraise**

The Company will have a pro-forma cash balance of £2.4 million following the receipt
of the net proceeds of the Fundraise and upon actioning of the letters of intent.

The Company, which is currently in a “close period” that restricts Directors’ and
applicable employees trading in the Company’s Ordinary Shares, has received letters
of intent in respect of subscribing on the same terms as the Subscription from a
Directors’ related party (this is consistent with the Relationship Agreement between
the Company and Al Marjan) and from a number of employees once the Company has exited
the “close period”. This would potentially result in further cash proceeds of £0.58
million (and issue of up to 10,545,457 Ordinary Shares) if such letters of intent
are subsequently acted upon, and Al Marjan Ltd, the Company’s largest shareholder,
shall have 28.2% with a subscription of £0.565 million cash.

The net proceeds of the Fundraise will be used by Savannah to advance its pipeline
of projects. This includes further drilling at the Mina do Barroso Lithium Project
in Portugal, where there are ongoing Reverse Circulation and diamond core drilling
programmes underway and metallurgical test work. In addition, a scoping study is
being undertaken by internationally recognised consultants, Hatch. The funds raised
will also be used to advance the Company’s high-grade copper mine development in
Oman. Additionally, funds raised will be used for the Preliminary Feasibility Study
of the Mutamba Heavy Mineral Sands Project in Mozambique.

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