7th Feb 2025 11:50
(Alliance News) - Savannah Resources PLC on Friday said it is required to temporarily stop work on land it had been given temporary access to at the Barroso Lithium Project in Portugal due to legal action.
The European-focused lithium producer said a precautionary measure had been filed at the Administrative and Fiscal Court of Mirandela by three local landowners against the Portuguese Ministry for the Environment and Energy.
The measure relates to the temporary land easement order granted by the Portuguese state in December, which gave Savannah temporary access to land it does not own at the Project to conduct field work for its definitive feasibility study.
The company said the authority of the order is automatically suspended as it has been contested in a court, which mean it must stop work on the relevant land.
Savannah said it has complied with the requirement, but it is free to continue work on land it owns or has alternative access rights to.
The firm described the action as an "expected manoeuvre aimed at stalling the project".
It said the measure is "without merit" and it will prepare a contestation for the court.
"The company will treat the latest action like other previous legal claims which are considered baseless, and expects to return to work on the lands concerned shortly," Savannah said.
Shares in Savannah were up 4.3% to 4.57 pence in London on Friday morning.
By Michael Hennessey, Alliance News reporter
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