Savannah Resources Plc (LON:SAV) has raised approximately £1.52 mln cash through a subscription by new and existing investors at a price of 5.5p per ordinary share.
Savannah has also received letters of intent for a further £580,000 worth of shares, to be issued once the company exits its close period.
READ: Savannah Resources boosts Mina do Barroso with highly encouraging metallurgical results
That takes gross proceeds to £2.1mln. The fundraise was oversubscribed.
The money raised will be used to continue resource definition drilling and scoping study at the Mina do Barroso lithium project in Portugal as the Savannah fast-tracks it to a decision to mine.
A portion will also go towards continuing activities to commence copper mining in Oman later this year.
And money will also be allocated to the Mutamba heavy mineral sands project in Mozambique to advance the preliminary feasibility study.
"The oversubscribed fundraise evidences the continued strong support from both our cornerstone shareholder, Al Marjan Ltd, and from a number of other existing and new shareholders,” said Savannah chief executive David Archer.
“The funds raised will be principally directed to continuing resource definition drilling of the Mina do Barroso mining lease in Portugal, so that we can build upon the existing Mineral Resource of 9.1mln tonnes at 1.03% Li₂O, containing 94,100t of Li₂O. Alongside this we are undertaking further metallurgical test work and are focussed on completing the scoping study being undertaken by Hatch. We believe the project has the potential to be the first significant lithium producer in Europe."