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General mining & base metals

Savannah Resources raises £339,060 via placing

Savannah Resources says it's in an "excellent position" following a placing to a new investor, which has brought in £339,060.

Savannah Resources (LON:SAV) says it's in an "excellent position" following a placing to a new investor, which has brought in £339,060.

The firm issued around 16.9mln shares to Al Marjan Ltd at 2p each - around a 2.4% discount to Friday's closing price of 2.05p.

Al Marjan now holds 6.04% of the share capital.

Savannah chief executive David Archer told investors: "We are delighted to see very solid support for Savannah's investment case with the placing to a new significant shareholder, Al Marjan Limited.

"This placing, together with the issue announced on 7 October to three of our existing shareholders, results in aggregate cash raised of £564,060 before expenses. This puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman and progressing our mineral sands initiative in Mozambique.''

The firm also announced, as part of the placing, that its chairman Matthew King has chosen to take part of his pay in shares by way of a director subscription - also at 2p.

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