REG - Savannah Resources - Portuguese shareholding increases to c.12%

Savannah ResourcesAnnouncement

01/08/2024 11:30

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RNS Number : 8187Y  Savannah Resources PLC  01 August 2024

 

 

1 August 2024

 

Savannah Resources Plc

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

 

Portuguese shareholding increases to c.12%

 

Savannah Resources Plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased
to report that the shareholding in the Company owned by Portuguese investors
is now approximately 12%.

 

Savannah has received notification that Slipstream Resources ('Slipstream')
has sold 75m shares to an existing significant Portuguese shareholder on 31
July 2024. Following this transaction, Slipstream remains a significant
shareholder in Savannah with 73.3m Shares, representing 3.37% of the Company's
issued share capital with voting rights, and the total shareholding held by
Portuguese investors has risen to approximately 12%.

 

Emanuel Proença, Savannah's Chief Executive Officer said, "We are delighted
that the overall Portuguese shareholding in Savannah continues to grow and is
now around 12%. I trust that Portuguese and non-Portuguese investors alike
interpret this domestic buying as a further indicator of the desire shared by
many Portuguese for the Project to enter production and play its part in
building a new sector for Portugal's economy, whilst also contributing to
national and European efforts to execute the energy transition."

 

"The Project is now in an extremely strong position, supported by the c.£21m
(c.€25m) of cash the Company reported in late June following the investment
by our new strategic partner, AMG Critical Materials N.V.. We are grateful for
the support provided by our strategic partner and our many other shareholders,
and look forward to reporting on our continued progress."

 

Dale Ferguson, Savannah's Technical Director and Founding Partner of
Slipstream Resources said, "Slipstream is committed to remaining very closely
involved in the Project going forward. This is reflected in the significant
shareholding we have maintained following this transaction and I will be
continuing in my role as Technical Director. However, as a natural resource
incubator business, Slipstream periodically has additional calls on its
capital. Hence, we have taken the decision to reduce our shareholding in
Savannah at this time, confident that both the Company and the Project are in
a very robust position financially."

 

 

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**

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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 & Joint Broker)      Tel: +44 20 3470 0470

 David Hignell/ Charlie Bouverat (Corporate Finance)

 Grant Barker/Abigail Wayne (Sales & Broking)

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

 Filipe Martins/Chris Tonkin
 Camarco (Financial PR)                                                 Tel: +44 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 battery
grade 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 (contained in c.190,000tpa of
spodumene concentrate) 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.

 

In June 2024, Savannah entered a strategic partnership with AMG Critical
Materials N.V., the global critical materials business and established lithium
market participant. AMG has invested GBP 16m in Savannah in exchange for a
15.8% stake in the Company and a 5 year, 45ktpa spodumene offtake agreement.
This investment alongside existing cash provides Savannah with the finance
required to take the Project to a Final Investment Decision point. AMG can
increase its offtake to 90ktpa for 10 years if it provides an acceptable full
project funding solution for the Project's construction.

 

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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