Savannah Resources PLC (LON:SAV) is involved in advanced negotiations with several counterparties regarding offtake agreements, services and strategic partnerships for its Mina do Barroso project.
“Investors should be assured that in the board's opinion the groups we are negotiating with represent ideal counterparties for the project and we are confident of formalising commercial terms with them in a timely manner,” said David Archer, chief executive.
"The car sales statistics show that the EV revolution is well underway in Europe and we are in the process of positioning Mina do Barroso, and Portugal, at the heart of the future lithium battery supply chain into this market," he added.
In the meantime, Savannah will focus on completing the pre-development phase of the lithium project.
This will mean lodging the EIA [environmental permit]and other licence-related documentation with the Portuguese authorities, finishing the DFS, obtaining local approval and arranging the finance required to build the project.
Archer added that one of the secondary effects on the coronavirus outbreak has to been to highlight the need for a sustainable lithium battery supply chain based in Europe.
"While further uncertainty must be expected over the coming months, primarily due to the Coronavirus outbreak and its impact on so many facets of everyday life, a recent US $200m financing package in our peer group provides an encouraging backdrop to the sector.”
Losses in the year to December were £3.8mln (£3.4mln) with cash at the year-end of £3.5mln.