20th Jun 2019 11:37
(Alliance News) - Savannah Resources PLC on Thursday said it has acquired the remaining 25% stake in Portugal's Mina do Barroso lithium project in an all-share transaction.
The deal gives Savannah Resources 100% control of its flagship asset. The remaining interest was acquired from minority shareholders, including resource investor Slipstream Resources Investments Pty Ltd, which is already a Savannah shareholder and has increased its Savannah interest to 16% from 5.1%.
Savannah Resources has issued 163 million shares at USD0.073 per share as payment for the stake, around 5.6 pence, valuing the deal at approximately USD11.9 million.
Shares in Savannah Resources were down 0.5% at 4.98 pence late on Thursday morning.
In addition, the resource developer has signed an agreement with Gentor Resources Inc to settle the deferred consideration relating to the acquisition of the block 5 licence in Oman in 2014.
The deferred consideration, USD3.0 million, will be cancelled in full in exchange for USD200,000 worth of shares in Savannah Resources and a USD100,000 cash payment.
Savannah Resources Chief Executive David Archer said: "We are delighted to have completed this acquisition which increases Savannah's stake in the Mina do Barroso project to 100%. We believe the project will play a crucial role in securing Europe's new lithium battery supply chain by providing a long-term and reliable source of battery grade spodumene lithium concentrate. As we move into a critical phase in the project's definition, permitting and financing, we believe the simplified ownership structure has significant benefits, and provides our shareholders with greater exposure to the project's long-term value."
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