Savannah Resources PLC Issue of Shares - Portuguese Acquisition (7686G)
June 01 2017 - 2:00AM
UK Regulatory
TIDMSAV
RNS Number : 7686G
Savannah Resources PLC
01 June 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
1 June 2017
Savannah Resources Plc
Issue of Shares in connection with Portuguese Acquisition
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
announces that, pursuant to the terms of the transaction between
the Company and a consortium of vendors led by Slipstream Resources
Investments Pty Ltd (the 'Vendors'), for the acquisition of various
mining and exploration assets within the territory of Portugal (as
announced by the Company on 25 May 2017), the Company will now
issue 20,000,000 ordinary shares of 1p each in the Company
('Ordinary Shares') at an issue price of 6.5p (being the Company's
closing price on 31 May 2017) (the 'Consideration Shares') to the
Vendors.
Details of Consideration Share Issue
Application will be made for the Consideration Shares, which
will rank pari passu with the existing Ordinary Shares in the
Company, to be admitted to trading on AIM ('Admission'). It is
expected that Admission will become effective on or around 6 June
2017. The Consideration Shares shall be held in escrow for six
months from their date of issue.
Following Admission, the Company's total issued share capital
will consist of 534,540,089 Ordinary Shares. As such, the total
number of voting rights in the Company will be 534,540,089 Ordinary
Shares. This number may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their
interest, in the Company under the FCA's Disclosure and
Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Jon Belliss / Elliot Beaufort Securities Tel: +44 20
Hance Ltd 7382 8300
(Corporate Broker)
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Brocklehurst Ltd 7236 1177
(Financial PR)
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in
Mozambique in collaboration with Rio Tinto, and can earn a 51%
interest in the related Consortium, which has an established
initial Indicated and Inferred Mineral Resource Estimate of 4.4
billion tonnes at 3.9% THM over the Jangamo, Dongane and Ravene
deposits. Under the terms of the Consortium Agreement with Rio
Tinto, upon delivery by Savannah of the following will earn the
corresponding interest in the Mutamba Project (which currently is
20% following delivery of scoping study in May 2017):
pre-feasibility study - 35%; feasibility study - 51%. Additionally,
the Consortium Agreement includes an offtake agreement on
commercial terms for the sale of 100% of heavy mineral concentrate
production to Rio Tinto (or an affiliate).
Oman
Savannah has interests in two copper blocks in the highly
prospective Semail Ophiolite Belt in Oman. The projects, which have
an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper
and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold
credits, provide Savannah with an excellent opportunity to
potentially evolve into a mid-tier copper and gold producer in a
relatively short time frame. Together with its Omani partners,
Savannah aims to outline further mineral resources to provide the
critical mass for a central operating plant to develop the deposits
and in December 2015 outlined exploration targets of between
10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4%
copper.
Portugal
Savannah holds a 75% interest one mining licence and nine
prospective applications for the exploration and development of
lithium, covering an area in excess of 1,018km2 in northern
Portugal. This includes the highly strategic Mina do Barroso
prospect, which with an approved Mining Plan ('MP'), Environmental
Impact Assessment ('EIA') and a 30-year mining concession/Mining
Licence ('ML'), means that with a defined JORC resource a
development decision could be made as early as Q4 2018.
Finland
Savannah has Reservation Permits over two new lithium projects,
Somero and Erajarvi, covering an area of 159km(2) in Finland.
Savannah holds a 100% interest in these projects through its
Finnish subsidiary Finkallio Oy. Geological mapping has highlighted
the presence of seven pegmatites across the licence areas - two on
Somero and five on Erajarvi - with key lithium minerals petalite,
spodumene and lepidolite all identified in hand specimens. Follow
up work to further expand and define the pegmatites in readiness
for drilling is being planned for the second quarter of 2017 (after
winter).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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