Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) told investors that its wholly-owned subsidiary, Savannah Lithium Ltda, has been joined as the counter-interested party in litigation brought by the Parish of Covas do Barroso as plaintiff in the Mirandela Fiscal and Administrative Court in Portugal against the Republic of Portugal and the Ministry of Economy as defendants.
In a stock market statement, the company noted that the litigation seeks to nullify certain administrative actions by the defendants in June 2016, including the addition of lithium to and the expansion in the area of the C-100 Mining Lease.
The lease, which is host to the Barroso Lithium Project, is fully granted, has a term of 30 years to 2036 and remains in good standing, it added.
“The advice from Savannah's lawyers is that the claim is without foundation and will be challenged by Savannah as the counter-interested party alongside exploring all potential options, including making a claim for damages against the plaintiff,” the company said.
“The litigation neither impacts the Barroso Lithium Project's activities nor the current environmental impact assessment process which is moving to a conclusion.”