Aim-listed Savannah Resources has full ownership of the Mina do Barroso project, following the $11.9-million buyout of minority shareholders in the Portugal lithium project.

The remaining 25% interest was acquired from minority shareholders, including resource investment specialist Slipstream Resources Investments, which increased its shareholding from 5.1% to 16.0%.

Savannah said on Thursday that 100% ownership provided greater exposure to the lithium project and optionality as the development and commercialisation of the project progressed.

“We believe the project will play a crucial role in securing Europe’s new lithium battery supply chain by providing a long-term and reliable source of battery grade spodumene lithium concentrate. As we move into a critical phase in the project’s definition, permitting and financing, we believe the simplified ownership structure has significant benefits, and provides our shareholders with greater exposure to the project’s long-term value,” commented CEO David Archer.

“The European lithium sector is developing at a very rapid rate,” he said, citing several examples including Northvolt’s successful financing of ‘Europe’s first homegrown (16 GWh) gigafactory’ in Sweden and its 50:50 joint venture with Volkswagen to establish a second, 16 GWh battery plant in Germany.

At the same time, the European Commission has also reaffirmed its commitment to "completing the value chain" with greater financing to be made available for battery metal mining and refining from the European Union through the European Investment Bank and the European Bank for Reconstruction and Development.

Meanwhile, Savannah also announced that it had reached a settlement to cancel the deferred contingent liability of $3-million in respect of the Block 5 licence in Oman.

The deferred consideration relating to a 2014 share purchase agreement between Savannah and Gentor Resources would be cancelled in full in return for the issue of $200 000 worth of shares and a cash payment of $100 000.