REG - Savannah Resources - Partnering Process and Appointment of Advisers

Savannah ResourcesAnnouncement

06/11/2023 07:00

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RNS Number : 4137S  Savannah Resources PLC  06 November 2023

 

 

6 November 2023

 

Savannah Resources Plc

(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')

 

Strategic Partnering Process & Appointment of Advisers

 

Savannah Resources Plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased
to share positive progress on the 'Strategic Partnering Process' (the
'Process') it is running to identify partners for the Project. The Company is
also pleased to announce the appointment of Barclays Bank PLC, acting through
its Investment Bank ('Barclays') and Barrenjoey Advisory Pty Limited
('Barrenjoey') as joint financial advisers to lead the Process.

 

Highlights:

·    Commercial interest in the Project and its spodumene lithium offtake
has been strong for a number of years and increased significantly following
the 'DIA' approval for the Project from Portugal's environmental regulator and
publication of a new Scoping Study earlier this year

·    To quantify the commercial interest received in the Project, the
Company initiated an orderly Strategic Partnering Process in July, in which
interested parties were invited to submit proposals outlining how they could
assist Savannah with financing the Project's development as part of a long
term commercial relationship with the Company

·    Due to the high number of positive responses received from a wide
range of groups, Savannah has now appointed Barclays and Barrenjoey as joint
financial advisers to lead on the next phase of the Process. Barclays and
Barrenjoey have significant experience in managing transactions in the lithium
sector and the wider metals and mining industry

·    The Process is now focused on engaging with a short-list of potential
strategic partners both willing and able to assist with the Project's future
development and financing, and which also bring complementary skills or
additional opportunities to Savannah

·    Further updates will be provided as appropriate

 

Savannah's Chief Executive Officer, Emanuel Proença said, "The level of
interest we have received in our Strategic Partnering Process so far is
extremely pleasing. This Process has resulted in attractive draft proposals
from players situated at a number of different points along the lithium
battery value chain, and from groups looking to gain exposure to this critical
new industry. The level of interest in our Project reaffirms its quality and
strategic value for the European lithium battery value chain over the long
term.

 

"The next task is to carefully analyse and evaluate all the proposals received
and identify those parties who are not only willing to support Savannah in
securing the finance required to construct the Project, but which can also
offer additional benefits to Savannah and all its stakeholders through a
future partnership. This could include bringing complementary skills which can
be applied to the Project or by providing additional business opportunities to
Savannah.

 

"With drilling back underway at the Project, the environmental licencing and
Definitive Feasibility Study progressing, and with the Strategic Partnering
Process moving forward in parallel, these are busy and exciting times for
Savannah. We look forward to keeping shareholders and stakeholders up to date
with developments on all fronts over the coming months."

 

 

Further information:

 

About Barclays

Barclays was named Best Investment Bank in the UK in 2022 by Euromoney, the
10th such award in the previous 11 years. Internationally the bank has been
involved in financings totalling US$1.2 trillion as of 30 June 2023. With
country, industry and M&A specialist bankers located across the Americas,
Europe, Middle East, Africa, and Asia Pacific, Barclays' investment banking
team provides strategic advice, comprehensive solutions and risk management
services. Barclays' natural resources teams have advised on a large number of
significant transactions in a range of commodities and geographies across the
mining sector and involving some of the industry's largest companies.

 

Barclays, which is authorised by the Prudential Regulation Authority and
regulated in the United Kingdom by the Financial Conduct Authority and the
Prudential Regulation Authority, is acting exclusively for Savannah and no one
else in connection with the Process and will not be responsible to anyone
other than Savannah for providing the protections afforded to clients of
Barclays nor for providing advice in relation to the Process or any other
matter referred to in this Announcement.

https://www.cib.barclays/investment-banking.html
(https://www.cib.barclays/investment-banking.html)

 

 

About Barrenjoey

Barrenjoey is a leading Australian financial services firm uniquely
predominantly staff owned and locally managed with global reach through its
strategic partnering with Barclays. Barrenjoey employs over 350 people and has
teams based in Sydney, Melbourne and Perth covering corporate finance,
equities, research and fixed income. The firm supports a broad range of
domestic and international corporates, financial institutions, governments,
investment managers and asset managers. Barrenjoey's mining team are located
in Perth, West Australia, and have advised and been lead manager on a number
of significant transactions in the lithium space. https://barrenjoey.com/
(https://barrenjoey.com/)

 

 

 

 

 

Regulatory Information

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

 

Savannah - Enabling Europe's energy transition.

 

**ENDS**

Follow @SavannahRes on Twitter

Follow Savannah Resources on LinkedIn

 

 

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

 

 Savannah Resources PLC                                                 Tel: +44 (0) 20 7117 2489

 Emanuel Proença, CEO

 Barclays Bank PLC, acting through its Investment Bank                  Tel: +44 (0) 20 7623 2323

 (Joint Financial Adviser)
 Philip Lindop/ Akshay Majithia/ Ben Morton

 Barrenjoey Advisory Pty Limited (Joint Financial Adviser)              Tel: +61 2 9903 6000
 Paul Early/ Scott Cook

 SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker)      Tel: +44 (0) 20 3470 0470

 David Hignell/ Charlie Bouverat (Corporate Finance)

 Grant Barker/ Abigail Wayne (Sales & Broking)

 SCP Resource Finance (Joint Broker)                                    Tel: +44 (0) 204 548 1765

 Filipe Martins/ Chris Tonkin

 Camarco (Financial PR)                                                 Tel: +44 (0) 20 3757 4980

 Gordon Poole/ Emily Hall / Fergus Young

 LPM (Portugal Media Relations)                                         Tel: +351 218 508 110

 Herminio Santos/ Jorge Coelho

 

 

About Savannah

Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project in northern Portugal, the largest
spodumene lithium resource outlined to date in Europe.

 

Through the Barroso Lithium Project (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 rapidly developing lithium battery
value chain. After the Environmental Licence was granted in May 2023 and the
Scoping Study confirmed the economic potential of the Project in June 2023,
production is now targeted and on track to begin in 2026. At that stage,
Savannah will start producing enough lithium for approximately half a million
vehicle battery packs per year, equal to a significant portion of the European
Commission's Critical Raw Material Act goal of a minimum 10% of European
endogenous lithium production set for 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 London Stock Exchange's Alternative
Investment Market (AIM) and the Company's ordinary shares are also available
on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol
FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".

 

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