TIDMSAV
RNS Number : 2362U
Savannah Resources PLC
01 December 2021
1 December 2021
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the
'Company')
Mutamba Project
Savannah and Rio Tinto agree to amicably cancel Unincorporated
Joint Venture
Savannah received US$9.5m cash
Savannah Resources plc, the European lithium development
company, is pleased to announce that, following the completion of
the strategic review on its mineral sands operations in Mozambique
(the "Project"), it is to exit the Consortium Agreement with Rio
Tinto (originally announced on 11 October 2016) with immediate
effect. The Company will also exit its remaining assets in
Mozambique.
Rio Tinto has paid US$9.5m cash (the "Cash Termination
Compensation") primarily to Savannah's wholly owned UK subsidiary
in respect of the termination of the Consortium Agreement and the
transfer of the in-country Savannah team to Rio Tinto (the
"Transaction").
Highlights:
-- Cash Termination Compensation of US$9.5m cash, equating to 0.42 pence per share in Savannah
-- Rio Tinto will take full responsibility for the Mutamba
project (Mining Concessions 9228C and 9229C, and Mining Concession
application 9230C ("Mutamba")) with the intention to progress its
development
-- Savannah and Rio Tinto intend to transfer Savannah's in-country team to Rio Tinto
-- Savannah will immediately commence the process of divesting
its residual interests in Mozambique (primarily Matilda Minerals
Lda and Mining Concession 9735C)
-- The Transaction eliminates the need for cash resources and
ongoing management time to be devoted to what has become a non-core
asset for Savannah following the increasing significance of its
wholly owned Barroso Lithium Project in Portugal which is the most
significant deposit of spodumene lithium in Europe, and is capable
of producing enough lithium for 0.5m electric vehicles per year
-- The proceeds of the Transaction will be committed to the
development of the flagship Barroso Lithium Project, for which
Savannah's firm commitment is to plan and deliver a responsible
operation, which increases the wellbeing of local communities
David Archer, Savannah's Chief Executive Officer commented:
"With the Company's focus moving to the further development and
commercialisation of the Barroso Lithium Project, Mutamba has
become non-core to Savanah and an exit from Mutamba has been agreed
with our partner, Rio Tinto. The Transaction allows us to
concentrate both management resources and our increased cash
reserves exclusively to lithium in the Iberian Peninsula.
"Savannah is proud of its accomplishments in Mozambique, where
it has successfully operated the Mutamba Joint Venture since 2016.
This included the major technical achievement of establishing an
Indicated and Inferred Mineral Resource Estimate of 4.4Bt at 3.9%
THM (total heavy minerals) by combining Rio Tinto's historical data
and our own exploration work (announced 27 March 2017), and the
successful grant of three 25-year mining leases and one pending
mining lease.
"Savannah is also particularly proud of the extensive community
engagement programmes it has undertaken, which covered
infrastructure, agriculture, trade, education and public health.
Our enduring legacies include the establishment of infrastructure
that continues to provide clean drinking water for around 1,200
families and off grid solar power for 5,300 families; over 600
local farmers deriving higher income from the sale of donated
crops; and the 430 graduates that have benefited from the
vocational training centres established in Jangamo and Inhambane,
the majority of which quickly found employment related to their
training.
"We believe in Mutamba's potential as a world-class asset and
are confident that Rio Tinto is well placed to progress its
development for the benefit of the local communities and
Mozambique. I would like to thank Rio Tinto for its excellent
partnership and support over the past five years and wish them
every success in the future development of Mutamba. I would also
like to express my thanks to Savannah's in country team who have
worked diligently on the Project and, most recently, with the added
challenges brought by the COVID pandemic. We wish them and their
families well for the future."
Details of the Transaction
The Transaction constitutes a substantial transaction pursuant
to AIM Rule 12 of the AIM Rules for Companies. The key terms of the
Transaction are summarised below:
-- Cash Termination Compensation of US$9.5m to be paid
immediately (primarily to the Company's 100% owned UK subsidiary,
AME East Africa Ltd)
-- Relinquishment of the rights and obligations provided under
the Consortium Agreement - including that Savannah will not have an
interest in Mutamba and Rio Tinto will not have an interest in
Matilda Minerals Lda's Mining Concession 9735C
-- The transfer of Savannah's in country team to Rio Tinto
In its 30 June 2021 Interim Financial Report, Savannah reported
a loss of GBP0.4m for the period (1 July 2020 to 30 June 2021) and
total assets of GBP6.1m (primarily intangible exploration assets)
in respect of the assets relating to the Project.
Savannah was advised by Bruce Griffin of Farview Solutions
Limited on the strategic review of Mutamba and the transaction with
Rio Tinto.
Regulatory Information
This Announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
**ENDS**
Follow @SavannahRes on Twitter
Follow Savannah Resources on LinkedIn
For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
David Archer, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor)
David Hignell / Charlie Bouverat
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett/ Tim Redfern
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1666
Jessica Cave/ Ben Good (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate
Broking)
Camarco (Financial PR) Tel: +44 20 3757 4980
Gordon Poole / Emily Hall
About Savannah
Savannah is the owner of the Barroso Lithium Project, located
close to key infrastructure in Northern Portugal which contains the
most significant spodumene lithium resource in Western Europe. With
a positive Scoping Study which outlined a conventional mine and
concentrator operation producing 175,000t of spodumene concentrate
per annum, Savannah is progressing the development and
environmental licencing of the Barroso Lithium Project. A
Definitive Feasibility Study is underway, and Portugal's
environmental regulator is currently evaluating Savannah's
Environmental Impact Assessment study.
The Company is listed and regulated on the London Stock
Exchange's Alternative Investment Market (AIM: SAV). The Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB: SAV), and the Börse Stuttgart (SWB:
SAV).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBBBDDIUGDGBB
(END) Dow Jones Newswires
December 01, 2021 07:02 ET (12:02 GMT)
Savannah Resources (LSE:SAV)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Savannah Resources (LSE:SAV)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
