24th Mar 2014 12:16
LONDON (Alliance News) - Savannah Resources PLC Monday said it has raised GBP1.5 million through the placing of 20 million shares at a price of 7.5 pence per share.
The exploration and development company said it is now in a strong cash position of over GBP2.0 million following the placing, which is at a 273% premium to its last placing price in October 2013.
The company said it plans to use the cash to fund its 2014 evaluation programme at the Jangamo Mineral Sands Project in Southern Mozambique and to provide general working capital.
Savannah noted that N+1 Singer acted as broker to the placing.
Earlier in March, the company announced that follow-up analysis of samples at Jangamo confirmed broad zones of heavy minerals up to 3.5% including ilmenite, rutile and zircon.
Savannah Resources shares were up 0.8% to 7.82 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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