Shares in Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) jumped 15% in early trading after receiving £16 million of investment from AMG Critical Materials Group, an Amsterdam-listed speciality metals group.
The cash injection and partnership will help fund Savannah's Barroso Lithium Project in Portugal, the largest deposit of its type in Europe.
The tie-up also includes an agreement where AMG can purchase a significant amount of lithium from Savannah's project for the next five years. If AMG helps secure all the funding needed to develop the project, it can increase its purchase for an extended period.
In the first hour of trading Savannah shares were up 0.62p at 4.57p.