Savannah Resource sells 10% stake in Mina do Barroso project to Galp

Tue, 12th Jan 2021

Mining group Savannah Resource said it had agreed to sell a 10% stake in the lithium field around its Mina do Barroso project in Portugal to potential customer Galp Energia for $6.4 million. Galp and Savannah also were set to evaluate, under exclusive terms, an offtake agreement for up to 100,000 tonnes per annuam of lithium concentrate from Mina do Barroso equating to about 50% of annual production. 'Galp's strategic presence and experience in Portugal and Europe's energy sector will be of significant benefit in driving the project to production,' the company said. The $6.4 million in funding would be used to further Savannah's progress on a definitive feasibility study, subject to due diligence and completion of definitive agreements relating to the partnership. 'We believe Mina do Barroso's low carbon footprint lithium concentrate will provide a key foundation for Europe's energy transition to electric mobility and we are delighted to be joined by Galp on this journey,' chief executive David Archer said. 'They are one of the leading European companies in the energy and renewables space with a commitment to the energy transition and have a wealth of experience in developing large scale projects such as this.' At 9:24am: (LON:SAV) Savannah Resources share price was 0p at 2.7p Story provided by StockMarketWire.com

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