REG - Savannah Resources - Savannah receives reassuring legal reviews

Savannah ResourcesAnnouncement

30/01/2024 07:15

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RNS Number : 2887B  Savannah Resources PLC  30 January 2024

 

 

30 January 2024

 

Savannah Resources Plc

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

 

Operation Influencer: Reassuring conclusions from Independent Legal Reviews

 

Savannah Resources Plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, Europe's largest spodumene lithium deposit, provides
an update on the actions it has taken in response to the investigation
launched by the Portuguese Public Prosecutor's Office ('PPO') on 7 November
2023 ('Operation Influencer', the 'Investigation').

 

Summary

Following receipt of a full legal assessment which included due diligence by
independent experts of relevant accounts, facts and documents in Savannah's
possession, Savannah can confidently reaffirm its solid legal standing. The
Independent Review (as defined below) concludes based on the evidence examined
that there was no improper use of Company money or evidence of wrongdoing by
the Company. The Legal Opinions (as defined below) conclude that Savannah's
ability to deliver the Project and generate future cash flows from it would
not be affected by the Investigation's findings. As it awaits new steps in the
Investigation, Savannah will continue to progress its Project unencumbered
while remaining ready to cooperate fully with the Portuguese authorities
should the Company be required to do so.

 

Actions taken by Savannah:

·    Commissioned CMS Portugal (Rui Pena, Arnaut e Associados, RL), part
of the internationally renowned law group CMS, to conduct an independent
review (the 'Independent Review') of the Company's activities between 1
January 2017 and 31 October 2023 in relation to Operation Influencer 1 .

·    Commissioned additional legal opinions (the 'Legal Opinions') from a
renowned Portuguese legal expert in constitutional and penal law, and also
from the specialist Portuguese law firm, Gama Glória.

 

Main conclusions reached:

The Independent Review found no evidence which would give rise to liability of
the Company in connection with any irregular financial transactions by the
Company. It also found no evidence of improper offers, improper payments, or
other forms of wrongdoing by the Company in regard to the suspicions set out
in the Investigation associated with: past relations with a potential partner,
discussions on the by-pass road, royalties, or in relation to interactions
with national entities in the EIA process under Article 16. No material legal
risk was identified related to the alleged facts and circumstances outlined in
the Investigation.

 

The Legal Opinions have confirmed that, based on the findings of the
Independent Review, but also on the functioning of the Portuguese permitting
process, past legal experience, and constitutional protections, under no
realistic circumstance would the Project's execution and its expected future
cash flows be at risk from the Investigation's findings.

 

The conclusions of the Independent Review and the Legal Opinions demonstrate
Savannah's solid legal position in relation to the alleged facts and
circumstances contained in Operation Influencer. These conclusions support
Savannah's previous statements that its business is always conducted in a
fully lawful manner, based on robust systems and controls the Company has in
place.

 

Other developments:

Savannah has had no further engagement with the investigating authorities
since 7 November 2023 and has continued with all its business activities.

 

On 21 December 2023, the PPO announced that the Investigation was being split
into three separate investigations (by industry), with one now covering the
two lithium projects. Savannah can confirm that it has no relationship with
the other lithium project involved. Based on past similar cases, the timeline
for next steps is uncertain and likely to be long, and a formal clearing or
accusation is not expected in the near term.

 

Savannah's Chief Executive Officer, Emanuel Proença said,

 

"Today's announcement sets out the actions we have taken to re-establish
confidence. While the Investigation may draw on evidence not available to the
Independent Review, and although further steps are to be expected, the
conclusions of the Independent Review and the Legal Opinions are clear and
sound, and I trust that they will reassure our stakeholders. I'll say clearly:
Savannah's legal standing is strong. The Project's Mining Lease remains in
good standing, development of the Project will continue, and we believe it
will deliver its expected results. The region and its people will benefit from
it; and Portugal will play a key role in Europe's new lithium battery value
chain.

 

"Operation Influencer has attracted much interest, both within Portugal and
overseas. Throughout this period our team has shown great resolve to deal with
the additional pressure and has worked extremely hard to ensure we continue to
progress the Project. Savannah stands ready to fully engage with the
Portuguese legal authorities as and when required. In the meantime, we will
focus on rebuilding the impact this had on the perception of Savannah and on
the matters within our control which can bring meaningful value accretion to
our Project and assure meaningful socio-economic benefits for the region."

 

Further background information on Operation Influencer, based on confirmed
public information, will be posted onto Savannah's website.

 

 

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 X

Follow Savannah Resources on LinkedIn

 

For further information please visit www.savannahresources.com
(https://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

 

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 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".

 

 1 For the execution of the independent audit, Savannah offered CMS access to
information of Savannah, including (but not only) contacts with external
parties. Relevant financial transactions within Savannah, email databases and
Company records were scrutinised, and confirmatory interviews with staff from
various levels of the Company were performed. Disclaimer: no other person may
or should rely on this summary of CMS' report or the fact of CMS Portugal (Rui
Pena, Arnaut e Associados, RL) appointment or work product in whatever form
for any purpose whatsoever.

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