TIDMSAV
RNS Number : 2779M
Savannah Resources PLC
12 October 2016
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
12 October 2016
Savannah Resources Plc
Completion of GBP0.83 million Subscription by Directors and
Major Shareholder
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, announces that further
to the recent cash placing to raise GBP1.42 million, as announced
on 26 September 2016, certain Directors of the Company and Al
Marjan Ltd ('Al Marjan'), the Company's major shareholder, have now
subscribed for 23,576,741 new ordinary shares in the Company (the
'Subscription Shares') at a price of 3.5p per ordinary share (the
'Subscription Price'), raising cash proceeds of GBP825,186 (the
'Subscription').
Details of the Subscription
-- Al Marjan to maintain shareholding of 29.99% with a subscription of GBP685,370 cash;
-- Savannah's CEO, David Archer to maintain his shareholding of
5.77% with a subscription of GBP129,816 cash; and
-- Savannah's Chairman, Matthew King, to subscribe for GBP10,000
worth of Subscription Shares, representing a holding of 0.20% of
the Company's total issued share capital as enlarged by the
Subscription.
As previously announced, the net proceeds of the Subscription
will be used by the Company as follows:
-- to fund work on its Oman Copper-Gold Project to help deliver
Mineral Resource updates, licencing documents, and a scoping
study;
-- to progress its heavy mineral sands projects in Mozambique
following the announcement confirming the new Consortium Agreement
with Rio Tinto Group on 11 October 2016;
-- to define drill targets at its lithium projects in Finland; and
-- to provide the Company with additional working capital.
Application will be made for the Subscription 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 and dealings will commence at 8.00
a.m. on 17 October 2016.
Following Admission the total issued share capital will consist
of 449,446,455 ordinary shares of 1p each ('Ordinary Shares'). As
such the total number of voting rights in the Company will be
449,446,455 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.
Related Party Transaction
David Archer, Matthew King and Al Marjan are directors of and
substantial shareholders in the Company (the 'Related Parties').
The Subscription by the Related Parties constitutes a related party
transaction in accordance with AIM Rule 13. Dale Ferguson, who is
not subscribing for Subscription Shares and is therefore an
independent Director for these purposes, having consulted with the
Company's Nominated Adviser, considers the Subscription by the
Related Parties to be fair and reasonable insofar as Savannah's
Shareholders are concerned.
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
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, development company.
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 at a grade of
2.2% copper and high grade intercepts of up to 56.35m at a grade of
6.21% Cu, with additional gold upside potential, 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.
Mozambique
Savannah operates combined projects with Rio Tinto, and can earn
a 51% interest in heavy mineral sands projects in Mozambique, which
have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM
(published in 2008). Under the terms of the agreement with Rio
Tinto Savannah must deliver the following to earn corresponding
interest in the combined projects: Scoping Study - 20%;
pre-feasibility study - 35%; feasibility study - 51%. Additionally
there is an offtake agreement for Rio Tinto to take 100% of
production.
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 by the Finnish
Government within the project areas has highlighted the presence of
lithium minerals spodumene, lepidolite and petalite with the
Government also identifying Somero and Erajarvi as one of the most
prospective areas to discover lithium deposits in Finland. Savannah
plans to initiate an exploration programme including data
compilation, geological mapping and surface sampling with the aim
of generating drill ready targets during 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
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October 12, 2016 02:00 ET (06:00 GMT)