Shares in Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) climbed 5% to 3.68p after the company completed an oversubscribed £9.2 million placing and subscription to fund expansion at its Barroso Lithium Project in northern Portugal.
The fundraising, which was scaled back due to strong investor demand, saw new shares issued at 3.7p each, with additional funds expected from a separate retail offer open until 11 November.
Chief executive Emanuel Proença said the support from investors “clearly demonstrates the growing interest” in the company’s project and “the improving investor sentiment towards the lithium sector.”
The cash will allow Savannah to acquire the Aldeia Mining Lease — the project’s highest-grade lithium deposit — and progress engineering, land rights, and financing work ahead of construction.
Proença said the raise gives Savannah “total cash reserves of approximately £20 million,” enabling it to move “quickly” toward becoming “a major producer of lithium raw material for Europe’s battery value chain.”