TIDMSAV
RNS Number : 0998W
Savannah Resources PLC
21 April 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE
RELEVANT SECURITIES LAWS OF SUCH JURISDICTION .
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT
ITSELF CONSTITUTE A PROSPECTUS OR OFFERING MEMORANDUM OR AN OFFER
FOR SALE OR SUBSCRIPTION IN RESPECT OF ANY SECURITIES IN THE
COMPANY. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR CONTAIN ANY
INVITATION, SOLICITATION, RECOMMATION, OFFER OR ADVICE TO ANY
PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY
SECURITIES OF SAVANNAH RESOURCES PLC IN ANY JURISDICTION IN WHICH
ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
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 ("MAR") .
21 April 2021
Savannah Resources Plc
Result of Oversubscribed Placing
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), the AIM quoted resource development
company, which is focused on becoming Europe's most significant
producer of spodumene lithium from its Mina do Barroso Project in
Portugal ('Mina do Barroso', 'MdB' or the 'Project'), is pleased to
announce that further to its announcement yesterday (the "Launch
Announcement"), it has successfully completed a significantly
oversubscribed Placing, which is now closed. The private placement
took place through an accelerated bookbuilding process managed by
Clarksons Platou Securities AS, finnCap Ltd and WH Ireland
Limited.
The Company has raised, in aggregate, GBP10 million (before
expenses) through the Placing of 250,000,000 Placing Shares at a
Placing Price of 4 pence per Placing Share and GBP0.3 million
through a direct subscription of 7,968,785 Subscription Shares also
at the Placing Price of 4p (the "Subscription").
David Archer, CEO of Savannah Resources plc, commented: "We are
delighted by the interest shown in Savannah by the international
equity capital markets and I would like to thank both our existing
and new shareholders for their participation in the Placing. We are
particularly pleased to welcome a number of new European investors
to our register. The GBP10.3m raised combined with the US$6.4m
investment expected from Galp Energia SGPS, S.A ('Galp') in the
Mina do Barroso project holding company, and our existing cash
reserves, puts Savannah in a strong financial position as we
continue to move towards the development phase at Mina do
Barroso.
"Our greatly increased capital position will not only allow
Savannah to complete the appraisal of Mina do Barroso, but to
complement that work by evaluating opportunities to further enhance
the Project's ESG credentials, undertaking exploration to define
additional resources, and adding key personnel to our project team
as we proceed to the development phase.
"It also gives us a greater position of strength from which to
develop Savannah's lithium business beyond Mina do Barroso. The
global lithium industry is experiencing a period of strong recovery
after a two-year period of falling prices. Lithium raw material
prices have all experienced significant increases since Q4 2020,
including the spodumene price which has risen approximately 70%
since November, as supply tightness has coincided with greater
demand driven by the rapid growth in EV sales.
"Nowhere is this more apparent than in Europe with well over a
million EVs sold last year despite the impact of COVID-19. The
European Commission expects the region's demand for lithium to
increase 18x by 2030, while the capacity of the region's domestic
battery manufacturing industry is forecast to grow more than 10x as
Europe's battery value chain expands rapidly in support of the
e-mobility revolution. Savannah is already one of the leading
players in Europe's new lithium raw material supply industry and
should now leverage its hard-earned position to further expand its
lithium supply business in Europe to maintain and grow its future
share of the market.
"Lithium represents the future for Savannah, but we also remain
committed to completing the technical and corporate review of the
Mutamba mineral sands project in Mozambique with our partner, Rio
Tinto. Hence a portion of the funds raised today will be used to
maintain the project, finalise the review work and execute its
findings. This should ensure that Mutamba's future and its true
value can be clarified for the benefit of our shareholders and the
other stakeholders in the project.
"It is an exciting time in the global lithium sector right now
and Europe is rapidly defining itself as a major demand centre with
a focus on responsibly sourced raw materials. Savannah is ideally
placed to service that demand and will be generating significant
news flow over the next 12 months as it takes Mina do Barroso
through a number of key milestones and looks to enhance and develop
its lithium business."
Admission to trading on AIM
The Placing and Subscription are conditional on the admission of
the Placing Shares and Subscription Shares to trading on AIM
("Admission"). Application has been made to the London Stock
Exchange for Admission which is expected to become effective and
dealings in the Placing Shares commence at 8.00 a.m. on 26 April
2021.
The issuance of the Placing Shares and Subscription Shares will
be made from the authorities granted to directors to issue ordinary
shares at the Annual General Meeting of the Company held on 25 June
2020.
Director and PDMR participation in the Placing
Matthew King, the Company's Chairman and Michael McGarty, the
Company's CFO, have subscribed for an aggregate of 562,500
Subscription Shares at the Placing Price pursuant to the
Subscription in the proportions set out below:
Director/PDMR Ordinary Shares Subscription Ordinary Shares Percentage of
held Shares subscribed held following Ordinary Shares
for Admission following Admission
Matthew King,
Chairman 2,604,028 312,500 2,916,528 0.17%
---------------- ------------------- ---------------- ---------------------
Michael McGarty,
CFO 795,238 250,000 1,045,238 0.06%
---------------- ------------------- ---------------- ---------------------
Related party transaction
Matthew King is a Director of the Company. Matthew King's
participation in the Subscription (the "Director Subscription")
therefore constitutes a related party transaction in accordance
with AIM Rule 13. The Savannah Directors other than Matthew King,
who are not subscribing for Placing or Subscription Shares and are
therefore independent Directors for these purposes, having
consulted with the Company's Nominated Adviser, consider the terms
of the Director Subscription to be fair and reasonable insofar as
Savannah's shareholders are concerned.
Significant shareholdings
Following the Placing, the percentage holds of certain
significant shareholders will change as per the table below:
Shareholder Holding Percentage Number of Holding Percentage
Prior to of Ordinary Placing Following of Ordinary
the Placing Shares Prior Shares / Placing Shares Following
to the Placing Subscription Placing
Shares Subscribed
for
Al Marjan
Ltd 268,262,589 18.75% 0 268,262,589 15.88%
------------- ---------------- ------------------- ------------ ------------------
Slipstream
Resources
Investments
Pty Ltd 147,180,000 10.29% 0 147,180,000 8.71%
------------- ---------------- ------------------- ------------ ------------------
Total voting rights
Following Admission of the Placing Shares and Subscription
Shares, the Company's issued and fully paid share capital will
consist of 1,688,959,820 Ordinary Shares. The Company has no
Ordinary Shares in treasury. As such, the total number of voting
rights in the Company will be 1,688,959,820 Ordinary Shares. This
number may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to
notify their interest, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency
Rules.
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
Clarksons Platou Securities AS (Joint Tel: +47 23 11 20 00
Bookrunner)
Fredrik Sandberg/Morten Lien
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett/ Tim Redfern
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1698
Jessica Cave / Matthew Chan (Corporate
Finance)
Adam Pollock (Corporate Broking)
Camarco (Financial PR) Tel: +44 20 3757 4980
Nick Hennis / Gordon Poole
IMPORTANT INFORMATION
This Announcement has been issued by, and is the sole
responsibility of, the Company. No representation or warranty
express or implied, is or will be made as to, or in relation to,
and no responsibility or liability is or will be accepted by
finnCap Ltd, WH Ireland Limited or Clarksons Platou Securities AS
or by any of their respective affiliates, agents, directors,
officers and employees as to or in relation to, the accuracy or
completeness of this Announcement or any other written or oral
information made available to or publicly available to any
interested party or its advisers, and any liability therefore is
expressly disclaimed.
This Announcement does not constitute, or form part of, a
prospectus relating to the Company, nor does it constitute or
contain any invitation or offer to any person, or any public offer,
to subscribe for, purchase or otherwise acquire any shares in the
Company or advise persons to do so in any jurisdiction, nor shall
it, or any part of it (other than the Appendix in relation to
Placees) form the basis of or be relied on in connection with any
contract or as an inducement to enter into any contract or
commitment with the Company. In particular, the Placing Shares have
not been, and will not be, registered under the Securities Act or
qualified for sale under the laws of any state of the United States
or under the applicable laws of any of Canada, Australia, the
Republic of South Africa, or Japan and, subject to certain
exceptions, may not be offered or sold in the United States or to,
or for the account or benefit of, US persons (as such term is
defined in Regulation S under the Securities Act) or to any
national, resident or citizen of Canada, Australia, the Republic of
South Africa or Japan.
The distribution or transmission of this Announcement and the
offering of the Placing Shares in certain jurisdictions may be
restricted or prohibited by law or regulation. Persons distributing
this Announcement must satisfy themselves that it is lawful to do
so. Any failure to comply with these restrictions may constitute a
violation of the securities laws of any such jurisdiction. No
action has been taken by the Company or the Joint Bookrunners that
would permit an offering of such shares or possession or
distribution of this Announcement or any other offering or
publicity material relating to such shares in any jurisdiction
where action for that purpose is required. Persons into whose
possession this Announcement comes are required by the Company and
the Joint Bookrunners to inform themselves about, and to observe,
such restrictions. In particular, this Announcement may not be
distributed, directly or indirectly, in or into the United States,
Canada, the Republic of South Africa, Australia or Japan. Overseas
Shareholders and any person (including, without limitation,
nominees and trustees), who have a contractual or other legal
obligation to forward this document to a jurisdiction outside the
UK should seek appropriate advice before taking any action.
This Announcement contains "forward-looking statements" which
includes all statements other than statements of historical fact,
including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of
management for future operations, or any statements preceded by,
followed by or that include the words "targets", "believes",
"expects", "aims", "intends", "will", "may", "anticipates",
"would", "could", "indicative", "possible" or similar expressions
or negatives thereof. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors beyond
the Company's control that could cause the actual results,
performance or achievements of the Group to be materially different
from future results, performance or achievements expressed or
implied by such forward-looking statements. Such forward-looking
statements are based on numerous assumptions regarding the
Company's present and future business strategies and the
environment in which the Company will operate in the future. These
forward-looking statements speak only as at the date of this
Announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statements
are based unless required to do so by applicable law or the AIM
Rules.
No statement in this Announcement is intended to be a profit
forecast and no statement in this Announcement should be
interpreted to mean that earnings or losses per share of the
Company for the current or future financial years would necessarily
match or exceed the historical published earnings or losses per
share of the Company.
finnCap Ltd, which is authorised and regulated by the Financial
Conduct Authority in the United Kingdom, is acting as Joint
Bookrunner and Joint Broker to the Company in connection with the
Placing. finnCap Ltd will not be responsible to any person other
than the Company for providing the protections afforded to clients
of finnCap Ltd or for providing advice to any other person in
connection with the Placing or any acquisition of shares in the
Company. finnCap Ltd is not making any representation or warranty,
express or implied, as to the contents of this Announcement.
finnCap Ltd has not authorised the contents of, or any part of,
this Announcement, and no liability whatsoever is accepted by
finnCap Ltd for the accuracy of any information or opinions
contained in this Announcement or for the omission of any material
information.
WH Ireland Limited, which is authorised and regulated by the
Financial Conduct Authority in the United Kingdom, is acting as
Joint Bookrunner and Joint Broker to the Company in connection with
the Placing. WH Ireland Limited will not be responsible to any
person other than the Company for providing the protections
afforded to clients of WH Ireland Limited or for providing advice
to any other person in connection with the Placing or any
acquisition of shares in the Company. WH Ireland Limited is not
making any representation or warranty, express or implied, as to
the contents of this Announcement. WH Ireland Limited has not
authorised the contents of, or any part of, this Announcement, and
no liability whatsoever is accepted by WH Ireland Limited for the
accuracy of any information or opinions contained in this
Announcement or for the omission of any material information.
Clarksons is authorised and regulated by the Financial
Supervisory Authority of Norway. It has been registered under the
UK FCA's Temporary Permissions Regime, which allows EEA-based firms
to operate in the UK for a limited period. Clarksons is acting as
Joint Bookrunner to the Company in connection with the Placing.
Clarksons will not be responsible to any person other than the
Company for providing the protections afforded to clients of
Clarksons or for providing advice to any other person in connection
with the Placing or any acquisition of shares in the Company.
Clarksons is not making any representation or warranty, express or
implied, as to the contents of this Announcement. Clarksons has not
authorised the contents of, or any part of, this Announcement, and
no liability whatsoever is accepted by Clarksons for the accuracy
of any information or opinions contained in this Announcement or
for the omission of any material information.
SP Angel Corporate Finance LLP, which is authorised and
regulated by the Financial Conduct Authority in the United Kingdom,
is acting as nominated adviser to the Company for the purposes of
the AIM Rules in connection with the Placing and, as nominated
adviser, its responsibilities are owed solely to the London Stock
Exchange and are not owed to the Company or its Directors or to any
other person or entity. SP Angel Corporate Finance LLP will not be
responsible to any person other than the Company for providing the
protections afforded to clients SP Angel Corporate Finance LLP or
for providing advice to any other person in connection with the
Fundraising or any acquisition of shares in the Company. SP Angel
Corporate Finance LLP is not making any representation or warranty,
express or implied, as to the contents of this Announcement. SP
Angel Corporate Finance LLP has not authorised the contents of, or
any part of, this Announcement, and no liability whatsoever is
accepted by SP Angel Corporate Finance LLP for the accuracy of any
information or opinions contained in this Announcement or for the
omission of any material information.
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END
ROIIBMTTMTTTMMB
(END) Dow Jones Newswires
April 21, 2021 02:00 ET (06:00 GMT)
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