Partner Slipstream Resources has swapped a 25% direct interest in the project for shares in Savannah, which will increase its stake in the junior to 16% from 5.1%.
The shares issued were priced at around 5.63p, a 13% premium to the close last night, valuing the transaction at £9.2mln and Mino do Barroso at just under £37mln. Savannah overall is valued at £44mln.
David Archer, Savannah’s chief executive, said the simplified ownership structure has significant benefits and gives shareholders greater exposure to Mina Do Barroso’s long-term value as the electric vehicle battery market evolves.
"The European lithium sector is developing at a very rapid rate. For example, in the short period since we announced our intention to secure the outstanding 25% stake in the Project, the market has witnessed Northvolt AB's successful financing of Europe's first homegrown (16GWh) gigafactory' in Sweden and its 50/50 joint venture with Volkswagen to establish a second, 16GWh battery plant in Germany,“ Archer added.
Savannah also settled the deferred consideration outstanding on its Block 5 copper project in Oman through the issue of US$200,000 worth of shares and us$100,000 in cash.
In afternoon trading, shares in Savannah Resources were 3% higher at 5.15p.
-- Adds share price --