REG - Savannah Resources - Approval of up to €110m Portuguese State Grant

Savannah ResourcesAnnouncement

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RNS Number : 3611O  Savannah Resources PLC  09 January 2026

 

09 January 2026

 

Savannah Resources Plc

(AIM: SAV) ('Savannah', or the 'Company')

 

Approval of up to €110m Portuguese State Grant

Portuguese State awards grant of up to €110 million to the Barroso Lithium
Project

 

Savannah Resources Plc, the developer of the Barroso Lithium Project in
Portugal, a 'Strategic Project' under the European Critical Raw Materials Act
and Europe's largest spodumene lithium deposit (the 'Project'), is delighted
to announce the award of a non-reimbursable grant (the 'Grant') of up to
approximately €110 million (approximately US$128 million) from the
Portuguese State and supported by national funds under the European Commission
Temporary Crisis and Transition Framework.

 

The Grant represents a highly significant financial contribution towards the
planned construction of the Project and further demonstrates the support the
Project is receiving from the Portuguese State in recognition of its status as
an asset of national and European importance in a new strategic industry for
the country and the European Union.

 

Highlights:

·    Grant details: The up to approximately €110 million 1  (#_ftn1)
(US$128 million) Grant is non-reimbursable 2  (#_ftn2) and is divided into two
parts. 75% (82.25 million Euros, US$96.23 million) is to be committed to the
Project's initial development capital expenditure ('CAPEX'), and the remaining
25% (27.42 million Euros, US$32.08 million) linked to performance milestones
during the operational phase.

·    Source: The Grant draws on the State's 'Investments in Strategic
Sectors' Incentive Scheme, ruled by Government Order no. 306-A/2024/1, of
November 27(th) ("Regulation") and falls under the contractual investment
regime ('RCI'), approved by Decree-Law No. 191/2014, of 31 December,
representing a large investment project in sectors that are fundamental to the
transition towards a carbon-neutral economy and in strategic sectors for the
transition to a net-zero emissions economy.

·    State Entities involved: The award is made by means of an investment
agreement with the Portuguese Trade & Investment Agency ('AICEP'),
pursuant to the approval by the Managing Authority of the Thematic Programme
for the Innovation and Digital Transition Programme (COMPETE 2030) and the
Ministry of Economy and Territorial Cohesion and supported under the European
Commission's Temporary Crisis and Transition Framework.

·    Conditions precedent: Savannah must comply with certain conditions
and Project timelines in order to receive the Grant (see below).

·    Next steps: Pursuant to the signing of the investment contract by the
parties, Savannah will work with AICEP to make the Grant compatible with any
future Project Financing and/or other potential funding options to complement
the development of the Project. Once executed, Savannah expects that draw down
from the first tranche of the funding will take place in parallel with the
initial capital development phase of the Project.

 

Emanuel Proenca, CEO of Savannah said, "The award of this Grant marks another,
highly important, milestone for Savannah and the Barroso Lithium Project. The
scale of the financial commitment being made by the Portuguese State will
provide a significant contribution towards the Project's CAPEX as we target
production from 2028. It also underlines the Portuguese State's significant
support for the Project's delivery, and mirrors similar recent actions taken
by other governments in support of strategic projects elsewhere in Europe and
around the world.

 

"There are multiple social and economic benefits associated with bringing our
Project into production, including creating a new industry and economic growth
for Portugal, providing a domestic source of responsibly produced lithium raw
material for Europe's greater energy independence, and bringing much needed
development and job opportunities to the Barroso region and the wider
northeast of Portugal. We are conscious of the responsibility we have to
deliver a project in accordance with the best international standards and to
the benefit of many people and entities on the ground in the Barroso region
with whom we already work. We are committed to fulfilling the demands and
responsibilities associated with Portuguese State investment, and we have
strong confidence in the State's commitment to continue to do its part in
making Portugal's lithium battery value chain a success for the country's
current and future generations."

 

"I look forward to providing Savannah's shareholders and stakeholders with
further updates regarding the Grant as it progresses".

 

Henrique Freire, CFO of Savannah said, "This Grant is excellent news and
represents strong financial and national support to our Project, which will
instil great confidence in our existing and future stakeholders.

 

"Savannah has already made good progress on key elements of the potential
financing package for the Project, including this Grant, ahead of a Final
Investment Decision expected later in the year. In the months ahead we will
continue to work on additional elements, such as debt financing and additional
partnerships, so that we have a full suite of financing options available to
deliver full execution of this highly strategic project."

 

Further information

 

·    Process and source of funding: The Grant is made following the call
for Applications SIFN/ISE/01-2024 - Incentive System «Investments in
Strategic Sectors», supported by national funds. Application no. 25645 was
submitted by Savannah's Portuguese subsidiary, Savannah Lithium, Unipessoal
Lda, under the contractual investment regime ('RCI'), approved by Decree-Law
No. 191/2014, of December 31, and paragraph 1 of Article 1 of the Regulation,
presenting large investment projects in sectors that are fundamental to the
transition towards a carbon-neutral economy and in strategic sectors for the
transition to a net-zero emissions economy. The application was evaluated and
negotiated with AICEP and then received approval from the Managing Committee
of the Managing Authority of the Thematic Programme for the Innovation and
Digital Transition Programme (COMPETE 2030) and the Portuguese Government,
under Order no. 241/2026, of December 29(th), published within the Official
Gazette ("Diário da República"), Series 2, no. 4, on 7 January 2026.

·    Objective: Construction of a new extraction and production unit for
spodumene concentrate essential for the production of batteries, electrolyzers
and other equipment that incorporate lithium in their composition, in Boticas
(Vila Real district, NUTS II Norte).

·    Financing: The call allows for 35% of the total amount of eligible
expenses to be granted to the applicant. Hence, Savannah can receive up to a
maximum total value of €109.67 million (US$128.31 million) in the form of a
Non-Refundable Grant divided into two parts as follows:

o  An amount of up to €82.25 million (US$96.23 million) equivalent to 75%
of the total, granted as consideration for the execution of the operation
(CAPEX); and

o  An amount of up to €27.42 million (US$32.08 million) equivalent to 25%
of the total, awarded as a contractual performance bonus sometime between 2031
and 2042.

·    Status of Grant: The Grant is executed through an investment contract
entered into between AICEP and Savannah Lithium Unipessoal Lda, under the
terms of Decree‑Law no. 191/2014, of 31 December and the Regulation.

·    Conditions precedent and execution risk. Savannah notes that while
this Grant represents a significant milestone, the Project remains subject to
permitting, financing, construction, and operational risks typical of mining
developments. Shareholders should note that the timing and quantum of Grant
receipts are contingent on meeting all contractual conditions. Should Savannah
or the Portuguese State not comply with the conditions precedent before the
end of the year, the contract would be void.

·    Next steps: Pursuant to the signing of the investment contract,
Savannah will work with AICEP to complete its execution and the fulfilment of
all contractual and legal obligations, notably regarding the Grant's
compatibility with any future Project Financing and/or other potential funding
option to complement the development of the Project.

 

 

Regulatory Information

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

**ENDS**

 

Follow @SavannahRes on X (Formerly known as Twitter)

Follow Savannah Resources on LinkedIn

 

For further information please visit www.savannahresources
(http://www.savannahresources) .com or contact:

 

 Savannah Resources PLC                                            Tel: +44 20 7117 2489

 Emanuel Proença, CEO
 SP Angel Corporate Finance LLP (Nominated Advisor & Broker)       Tel: +44 20 3470 0470

 David Hignell/ Charlie Bouverat (Corporate Finance)

 Grant Barker/Abigail Wayne (Sales & Broking)

 Canaccord Genuity Limited (Joint Broker)                          Tel: +44 20 7523 8000

 James Asensio / Charlie Hammond (Corporate Broking)

 Ben Knott (Sales)
 Portugal Media Relations

 Savannah Resources: Antonio Neves Costa, Communications Manager   Tel: +351 962 678 912

 

About Savannah

Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project (the 'Project') in northern Portugal. The
Project is the largest battery grade spodumene lithium resource outlined to
date in Europe and was classified as a 'Strategic Project' by the European
Commission under the Critical Raw Materials Act in March 2025.

 

Through the Project, Savannah will help Portugal to play an important role in
providing a long-term, locally sourced, lithium raw material supply for
Europe's lithium battery value chain. Once in operation the Project will
produce enough lithium (contained in c.190,000tpa of spodumene concentrate)
for approximately half a million vehicle battery packs per year and hence make
a significant contribution towards the European Commission's Critical Raw
Material Act goal of a minimum 10% of European endogenous lithium production
from 2030.

 

Savannah is focused on the responsible development and operation of the
Barroso Lithium Project so that its impact on the environment is minimised and
the socio-economic benefits that it can bring to all its stakeholders are
maximised.

 

The Company is listed and regulated on the AIM Market of the London Stock
Exchange and trades under the ticker "SAV".

 

 1  (#_ftnref1) The final amount of the Grant will be confirmed upon formal
award and may be less than the maximum amount stated, depending on the final
eligible cost of the Project.

 2  (#_ftnref2) If certain operational conditions are breached, then a portion
of the Grant may be repayable at a later date when the performance milestones
are reviewed after 2031.

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