11th Dec 2019 11:08
(Alliance News) - Savannah Resources PLC on Wednesday announced a new mining licence award for the Mutamba mineral sands project in Mozambique.
The 16,126 hectare licence is valid until May 2044, with the possibility of an extension for another 25 years, said Savannah. The first mining concession award at Mutamba was announced on Monday by Savannah.
"We are delighted with progress thus far at Mutamba, which we're developing in partnership with Rio Tinto PLC. We believe this is one of the most attractive undeveloped mineral sands deposits in the world," said Savannah's Chief Executive David Archer.
"Having received a second mining licence, we're now waiting on a third, which has already been conditionally awarded; together, the three concessions contain an indicated and inferred mineral resource of 4.4 billion tonnes of ore at 3.9% total heavy minerals."
London-based Savannah holds 20% in the project, though can raise this to 35% once a pre-feasibility study is delivering, a process ongoing. If a feasibility study is achieved, Savannah's stake could go to 51%.
The company's flagship asset is the Mina do Barroso lithium project in Portugal.
Shares were 3.8% higher on Wednesday morning in London at a price of 2.34 pence each.
By George Collard; [email protected]
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