REG - Savannah Resources - Technical work update and first capex purchase

Savannah ResourcesAnnouncement

Mon 07:00

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RNS Number : 6890E  Savannah Resources PLC  18 May 2026

 

 

 

18 May 2026

 

Savannah Resources Plc

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

 

Technical work update and first capital equipment purchased

 

Savannah Resources Plc, the developer of the Barroso Lithium Project in
Portugal (the 'Project'), a 'Strategic Project' under the European Critical
Raw Materials Act and Europe's largest spodumene lithium deposit is pleased to
provide an update on various technical work programmes and the first capital
equipment purchase for the Project.

 

Technical work update:

·    Definitive Feasibility Study ('DFS'): Savannah's team and its
external consultants continue to make good progress with all elements of the
DFS. Final review of some elements has started, and all remaining work will be
completed to the required standards over the coming weeks. Previous guidance
is reconfirmed with completion expected in July.

·    Geotechnical study: Following the award of the second temporary land
access last week (see 6 May 2026 RNS), Savannah is close to completing the
associated formalities, including communicating with all relevant landowners,
and has begun work preparing the ground for the planned fieldwork. Field teams
are already working on Savannah owned land plots, performing the annual
pre-fire season vegetation clearing ahead of preparing the geotechnical
campaign.

·    Front-End Engineering Design ('FEED') study: The tendering process
for the engineering contractor to undertake the FEED study for key long lead
item equipment is well advanced. Savannah expects to select a provider from
the strong short list in the coming weeks. Once selected, the chosen group is
expected to begin this critical piece of work in June.

·    Environmental licence compliance study ('RECAPE'):

o  Following recent engagement with the Laboratório Nacional Engenharia
Civil ('LNEC'), the Portuguese governmental body responsible for advising the
environmental regulator ('APA') on water related Infrastructure, Savannah will
bring forward planned detailed engineering work on the Project's water
infrastructure to further enhance its RECAPE submission. This work was
originally scheduled to take place prior to construction.

o  Contractor selection: Savannah has moved quickly and appointed Portuguese
Engineering company, COBA, to undertake the work. COBA brings decades of
domestic and international experience in water related infrastructure
engineering work and mining. COBA will begin the work later this month.

o  Timeline implications: Factoring in this additional engineering work,
Savannah now expects to complete its RECAPE submission for the environmental
licencing process during Q4 2026. Based on the date of submission and the 50
working day review period available to APA under the relevant legislation, its
decision would then be due in or before late February 2027. Savannah will act
to manage the impact of this schedule extension on other workstreams as
required, including the Project's financing process, maintaining the target of
first production in 2028.

·    First capital equipment purchase: Savannah was pleased to recently
mark the milestone of the first piece of equipment purchased as part of the
Project's overall initial capital expenditure ('CAPEX'). A transformer has
been purchased to form an integral part of the new electrical infrastructure
at the Project.

 

Emanuel Proenca, Chief Executive Officer of Savannah commented, "The team are
making good progress with the multiple technical workstreams which are
currently underway on the Project and I can reconfirm expected completion of
the DFS in July and our 2028 target for first production. The extension to the
timeline for the environmental licencing process is a prudent risk mitigation
step that will help to ensure that our RECAPE submission will be of top
quality, and the Project's environmental licence will be finalised.
Furthermore, this additional work, along with the geotechnical work we are
undertaking, will also help to advance the Project's detailed engineering
ahead of construction.

 

"On a different front, we were very pleased to pass another milestone on the
Project with our first capital equipment purchase. While relatively small,
this avoids potential delays on an item that frequently suffers long delivery
times worldwide. It also marks the beginning of the 'build' phase and
reiterates our commitment to delivering the Project. Further purchases and
deposits for long lead items will be made at the appropriate times as we move
towards construction next year.

 

"With much going on, including the upcoming geotechnical field work, I look
forward to keeping all stakeholders and shareholders updated with Savannah's
ongoing progress."

 

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.

 

 

Savannah - Enabling Europe's energy transition.

 

**ENDS**

 

Follow @SavannahRes on X (Formerly known as Twitter)

 

Follow Savannah Resources on LinkedIn

 

 

For further information please visit www.savannahresources.com or contact:

 

 Savannah Resources PLC                                                  Tel: +351 963 850 959

 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)

                                                                         Tel: +44 20 7523 8000

 Canaccord Genuity Limited (Joint Broker)

 James Asensio / Rory Blundell / Charlie Hammond (Corporate Broking)

 Ben Knott (Sales)

 Portugal Media Relations                                                Tel: +351 962 678 912

 António Neves Costa (Communications Manager)

 

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 and was approved
for a Portuguese State development Grant of up to €110m in January 2026.

 

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 London Stock Exchange's Alternative
Investment Market (AIM) and trades under the ticker "SAV".

 

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