Savannah Resources (LSE:SAV) has completed a capital raise, which was ‘significantly’ oversubscribed, raising US$36 million ($51.1 million), which will be used to develop the Barroso Lithium Project in Portugal.
As reported yesterday (23 September), shares were issued at £0.055 ($0.10) per share under the placing. The capital raise also included a subscription of up to US$12.7 million from various investors, including four of the company’s largest shareholders.
CEO Emanuel Proença says the company continues to experience support from a deep and diverse pool of existing and new investors as it moves ever closer to construction and first production at Barroso.
“With the US$36 million raised in this significantly oversubscribed placing, supplementing our existing cash reserves, we can move forward as planned to a final investment decision (FID) on the project in 2027 and maintain our current momentum by being able to finance other key workstreams, such as long-lead item orders, initial groundworks, project finance fees, and key personnel hires,” Proença says.
“The remainder of the year will be another very busy period for the company as we look to secure our second offtake partner, submit the RECAPE to Portugal’s environmental regulator, obtain conditional project finance offers, and progress key technical workstreams.
“In doing so, we will be preparing the way for FID, financing completion, and the initiation of construction next year.”
Savannah’s Barroso Project has a resource of 39 million tonnes (Mt) @ 1.05% lithium oxide for 411,900 tonnes across five ore bodies. The project’s exploration target ranges between 35Mt and 62Mt at an average grade of 0.9–1.2% lithium oxide.
Savannah Resources is a lithium-focused developer which owns the Barroso Project in Portugal.
Write to Aaliyah Rogan at Mining.com.au
Main image: Savannah Resources
