15th Apr 2019 12:24
LONDON (Alliance News) - Savannah Resources PLC on Monday said it has purchased all of the Mina do Barroso lithium project in Portugal is does not already own.
Savannah is buying the remaining 25% of Mina do Barroso from shareholders including Slipstream Resources Investments Pty Ltd.
Savannah will issue 163 million new shares at around 5.63 pence per share, which Savannah said values the offer at around USD11.6 million and equals 16% of its enlarged share capital. Shares were 0.6% lower on Monday at 5.62p each.
Slipstream, following the deal, will own 16% of Savannah, from 5.1% before.
Chief Executive David Archer said: "We see great economic and strategic value in the project and we are pleased to have the opportunity to increase our stake to 100%.
"We believe this transaction, which will give Savannah complete control of the project, provides welcome simplification, clarity and valuable optionality as we seek to progress our negotiations regarding lithium and co-product offtake agreements along with the project's proposed financing."
"The company remains focused on completing the project's definitive feasibility study and environmental impact assessment and permitting process, which will allow a development decision to be made," Archer continued.
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