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Savannah Resources raises approximately £3.91mln through a share subscription to advance a portfolio of projects

Published: 14:51 25 Oct 2017 BST

Cash raising
David Archer, Savannah's chief executive office said: “With this placement we are well positioned to move confidently into 2018"

Savannah Resources PLC (AIM:SAV) has raised approximately £3.91mln in cash, before expenses, through a share subscription by both new and existing investors to advance a portfolio of projects.

In a statement, the AIM-listed resources developer said the fund-raising comprised a placing of 74,433,232 new ordinary shares at a price of 5.25p each, as well as the issue of one warrant for every two new subscription shares with each warrant having an exercise price of 6.0p and a term of three years.

READ: Savannah Resources makes progress towards permit for Oman copper mines

The firm said the cash raised will be used to advance a portfolio of projects including further resource drilling at the Mina do Barroso Lithium Project in Portugal; completion of a scoping study ahead of commencing mining in H1 2018 at the company's copper project in Oman; and advancing the pre-feasibility study and commissioning of the pilot plant at the Mutamba Heavy Mineral Sands Project in Mozambique.

David Archer, Savannah's chief executive office said: "The placement evidences the continued strong support for the Company of our cornerstone shareholder, Al Marjan Ltd, 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 pre-feasibility study and pilot plant construction in Mozambique. 

“With this placement we are well positioned to move confidently into 2018."

In afternoon trading, Savannah Resources shares held steady at 5p.

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