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Al Marjan makes further investment in Savannah Resources

Private investment trust Al Marjan continues to show faith in Savannah Resources, backing the company in a £1.75mln premium placing. It means the investor will become the group's largest shareholder at 29.99%.
 Al Marjan makes further investment in Savannah Resources
Savannah issued around 98.3mln shares at around 1.8p a pop - an 11% premium to the 50 day VWAP (volume weighted average price).

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Private investment trust Al Marjan continues to show faith in Savannah Resources (LON:SAV), backing the company in a £1.75mln premium placing.

It means the investor will become the group's largest shareholder at 29.99%.

Savannah will issue around 98.3mln shares, in two tranches, at around 1.8p a pop - an 11% premium to the 50 day VWAP (volume weighted average price).

The funds will mainly be used to develop the copper projects in Oman, with production targeted to start in late 2017, and to provide working capital, the group said.

Savannah chief David Archer said: "We are delighted to see very solid support for Savannah's investment case with this significant follow on investment by Al Marjan Limited, who joined the share register in late 2015 and is strongly supportive of the company's growth strategy.

"This placing puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman in late 2017 and progressing our mineral sands initiative in Mozambique.  Furthermore, it enhances Savannah's already favourable profile within the Oman mining industry."

The investment gives Savannah a cash balance of around £2mln.

It is envisaged that Al Marjan will appoint two nominees and an alternate for each nominee to the Savannah board in due course.

Speaking to Proactive, Archer said Al Marjan was supportive of the company's plans and its backing set Savannah apart from many other juniors, in that it had this institutional support and was not reliant on private clients to raise finance.

The cash will be used for two main objectives - to  take the exploration targets at Oman of between 10 and  29mln tonnes  of copper to a designated indicated and inferred resource and to begin feasibility studies, he said.

Savannah shares added 1.19% to 2.125p on the day.

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