9th Oct 2018 11:43
LONDON (Alliance News) - Savannah Resources PLC said Tuesday it started the settlement of the second tranche for the acquisition of its Portuguese lithium portfolio.
The company bought the portfolio, which includes its flagship Mina do Barroso project, in May 2017 form Slipstream Resources Investments Pty Ltd.
The second, and final, tranche of the deferred consideration consists of AUD1.5 million in cash and the issue of 20 million shares in the company at 6.75 pence each.
The company's settlement payment was triggered by the discovery of "significant volumes of new mineralisation" at the project reported at the beginning of September.
The full terms of the acquisition agreed in May 2017, stated a purchase price of AUD1.0 million in cash and issue 20 million shares to the vendors, with another AUD10.1 million in cash and shares to be paid in the future if certain milestones are reached.
The first deferred consideration, settled in March 2018, was AUD1.5 million cash plus 20 million shares once a JORC resource update showed a mineral resource estimate of 9.1 million tonnes at 1.03% lithium oxide, which exceeded the target of 7.5 million tonnes at no less than 1.0% lithium oxide.
Savannah expects the 20 million shares to be admitted to trading on AIM on October 12, after which it will have a total issued share capital of 881.3 million.
Savannah shares were trading 1.5% higher at 6.80p each.
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