10th Apr 2014 13:36
LONDON (Alliance News) - Savannah Resources PLC said Thursday that it had raised USD6.3 million in a private placing to fund its acquisition of interests in the Oman Copper Belt.
It will place USD5.9 million in shares, and issue a USD400,000 unsecured convertible instrument to Bergen Global Opportunity Fund, which is managed by Bergen Asset Management LLC.
These funds will partly be used to fund its acquisitions, but also associated exploration and growth in those investments.
Savannah will acquire interests in the Block 5 and Block 6 copper projects in the Sultanate of Oman from Gentor Resources Inc, as part of its strategy to build into a multi-commodity exploration and development company.
It will acquire Gentor Resources subsidiary, which has a 65% interest in Block 5, and the right to earn a up to 70% interest in Block 6, for USD800.000, with a further USD3.0 deferred cash and shares contingent on milestones.
The prospects have an indicated and inferred mineral resource of 1.7 megatons at 2.2% copper and high grade intercepts of up to 56.35 meters at 6.21% copper at Block 5.
"The acquisition of Gentor's Oman copper projects is a major milestone in cementing Savannah's position as a multi-commodity exploration and development company and represents the first step in our strategy of establishing the Company as a mid-tier copper producer," Chief Executive David Archer in a statement.
Shares in Savannah were trading up 14% at 7.95 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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