Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF)'s key focus this year remains to receive an environmental permit (EIA) for its Barroso lithium project in Portugal, said chairman Matthew King.
The junior submitted the EIA report in 2020, but after delays due to a general election new cabinet members have been appointed and Savannah is hopeful APA, the Portuguese regulator, will make its decision in the coming months.
“If APA does approve our EIA, we will re-initiate the fieldwork required for completion of the Definitive Feasibility Study (DFS) and accelerate the build-out of our in-country team,” it said.
The DFS should be completed within 12 months of approval of the EIA.
Elsewhere, Savannah said its financial position has improved markedly with receipt of a US$9.5m termination compensation from Rio Tinto alongside £10.3m gross proceeds from April's placing.
Lithium, meanwhile, remains a strong market, with supply again failing to keep up with the demand created by increasing battery manufacturing and electric vehicle (EV) sales.
Savannah added that it has seen commercial interest in the project grow with this rise in demand and metal prices and believes an offtake agreement will be secured once the EIA is approved.
King said: "2022 is shaping up to be another key year for Savannah.
"The company is now solely focused on lithium and has the capital at hand to make meaningful progress towards development and production at the Barroso Lithium Project.
"Despite the current uncertainty, the market backdrop remains highly supportive with high lithium prices, global EV sales forecast to grow year-on-year,"
Pre-tax losses for the year to end-December 2021 were £3.5mln (£2.5mln) with a cash balance at the year-end of £13mln.