These funds will allow us to conclude the Definitive Feasibility Study on Mina do Barroso and should represent the last call on equity capital markets for finance relating to the project.
David Archer, chief executive
What it owns
The group’s asset portfolio encompasses:
• The Mina do Barroso lithium project in Portugal
• Block 4 and 5 Copper projects in Oman
• The Mutamba Mineral Sands project in Mozambique
• Somero and Eräjärvi lithium projects in Finland
How is it doing
In September, Savannah revealed substantial quantities of quartz and feldspar at Mina do Barroso project.
These can be recovered and sold to local ceramic and glass companies.
An initial mineral resource estimate at Grandao, a target within the Mina do Barroso licence, of 14.4Mt contains 4.79Mt of quartz and 6.11Mt of feldspar.
Though lithium is the main target, these by-products have the potential to provide a significant additional income stream, Savannah said.
In August, David Archer, chief executive, said the multiple workstreams were underway for the feasibility study at its flagship Mina do Barroso project. Then, in November, the company revealed a string of positive results in regard to metallurguical work.
Savannah has “second mover advantage” as it applies lessons learned from the first wave of Australian lithium developments to its Portuguese project.
The project is attracting interest from potential industry partners and off-takers as well as an opportunity to develop a lithium conversion plant in Portugal, which would allow the company to “lock-down from end-to-end the whole lithium value chain in Europe”.
Archer has also hailed the establishment of a European cross-border battery cell consortium, which was set up by Germany and France.
"The Franco-German decision to establish this initiative, as well as the EU's plans to launch a European raw materials investment facility, highlights the seriousness of the EU to strongly commit to increasing its investment in the European lithium battery industry”, he said.
In Oman, Savannah’s subsidiary has been awarded two licences to mine at Mahab 4 and Maqail South.
“These are the type of high-grade copper deposits that are characteristic of the Oman Ophiolite Belt and will be in the vanguard of new copper mine developments in Oman, “ said Archer.
The pair will be the first new mines in Oman for ten years, but developing two projects at the same time will be a stretch for Savannah, so Archer wants to set up a new entity for the copper mines.
Meanwhile, at Mutamba in Mozambique, Savannah has now added a third licence to the existing two that it already holds in joint venture with Rio Tinto. Once the paperwork is completed on that licence the plan is rapidly to progress the project through a pre-feasibility study. The first of three mining licences that the company is applying for at Mutamba was granted in December 2019.
Savannah Resources raised roughly £5mln in September - £3.76mln through a placing of shares at 2p a pop with a further £1.2mln to come from its major shareholder, Al Marjan.
In total, the newly issued shares represented around 19.3% of the company's enlarged share capital.
What the boss says: David Archer, CEO
"These funds will allow us to conclude the Definitive Feasibility Study on Mina do Barroso and should represent the last call on equity capital markets for finance relating to the Project.
"This study will build on the Scoping Study produced over the Project which already demonstrates compelling economics."
Watch the video
- Definitive feasibility study for Mina Do Barroso
- European initiative to develop electric battery capacity in Europe should aid Savannah
- By the year 2025, European lithium-ion batteries are expected to represent a market worth €250bn annually