JOHANNESBURG (miningweekly.com) – Aim-listed Savannah Resources has raised about £3.91-million through the issue of about 74.43-million shares to new and existing investors at a placing pricing of 5.25p a share.
It has also issued one warrant for every two new subscription shares, with each warrant having an exercise price of 6p.
The proceeds will be used for further drilling at the Mina do Barroso lithium project, in Portugal, with the aim of delivering an initial mineral resource estimate, as well as to complete a scoping study at the company’s copper project, in Oman, ahead of the start of mining in the first half of 2018.
Funds will also be invested in advancing the prefeasibility study and on the commissioning of a pilot plant at Savannah’s Mutamba heavy mineral sands project, in Mozambique.
“The placement evidences the continued strong support for the company of our cornerstone shareholder, Al Marjan, and from a number of existing and new shareholders.
“The funds raised will support our near-term copper development objectives for Oman, an increasing tempo of activity at our lithium project, in Portugal, and our prefeasibility study and pilot plant construction in Mozambique. With this placement we are well positioned to move confidently into 2018,” CEO David Archer commented on Wednesday.