Savannah Resources PLC (LON:SAV) has completed a fundraising through an oversubscribed share placing to boost the development of its Mina do Barroso Lithium project in Portugal.
The AIM-listed miner said the placing and subscription had raised around £11.5mln in cash and had seen strong demand from institutional investors with several tier 1 institutions participating in the placing.
WATCH: Savannah Resources raises £11.5mln to advance Mina do Barroso Lithium Project
Savannah added that it had also received a letter of intent from its major shareholder Al Marjan Limited for a further £1mln in funds pursuant to the relationship agreement between the two.
The firm said it would use the funds raised to support the next stage of development at its Mina do Barroso Lithium project where it plans to commission a feasibility study with a view to reaching a decision to mine in early 2019.
David Archer, Savannah’s chief executive, said: “The funds raised will allow us to continue to fast-track the development of our Mina do Barroso Lithium Project, which has the potential to be the leading European producer of spodumene lithium.”
The decision to push forward with the feasibility study follows the results of a scoping study in June which estimated that Mina do Barroso is worth US$356mln and would generate revenues of US$1.56bn over 11 years of production.