Savannah Resources (AIM:SAV) Result of £6.1 million Placing & Subscription

Savannah Resources plc, the European lithium development company is pleased to announce that further to its announcement dated 13 July 2023 (the “Launch Announcement”), it has successfully completed the Placing, which has now closed.

The Placing took place through an accelerated bookbuilding process managed by SP Angel Corporate Finance LLP and Clarksons Securities AS.

The Company has raised, in aggregate, £6.1 million (before expenses), from £2.4 million through the Placing of 51,151,711 Placing Shares at the Issue Price of 4.67 pence per Placing Share and £3.7 million through the Subscription for 79,203,932 Subscription Shares also at the Issue Price (the “Subscription”).

The PrimaryBid Offer remains open for individual investors until 4.30 p.m. on Monday 17 July 2023 and the result of the PrimaryBid Offer will be made as soon as practicable thereafter.

Dale Ferguson, CEO of Savannah Resources plc, commented: “We are delighted by the interest and support shown in Savannah’s ongoing development of the Barroso Lithium Project through the Placing and Subscription and I would like to thank both our existing and new shareholders for participating. It is a pleasure to welcome a number of new institutional investors onto our register, including some natural resource sector specialists. It is also very pleasing to continue to add to the international nature of our share register as we welcome more shareholders from Europe and Australasia while also building on our firm foundation of UK shareholders. We are also excited to offer our retail shareholders the opportunity to be part of the Fundraise through the PrimaryBid Offer, the result of which will be announced in due course.

“Following the Placing and Subscription, Savannah now has approximately £11 million in cash, which means we can move forward with great confidence, knowing that we have the monetary reserves available to complete the DFS drilling programme, the Mineral Resource Estimate upgrade, the RECAPE submission, the processing plant and infrastructure design, plus team expansion and community relations development.

“I am also looking forward to the opportunity to build our team as Savannah moves towards the potential construction phase of the Project and needs additional skills sets and resources. This funding allows us to start that process as we look to make key hires. We will also be continuing and expanding our social engagement programmes and will look to build more ties with local businesses which can potentially supply goods and services to the Project in the construction and operating phases.

“With significant funding now in place on top of the recent positive DIA decision from APA and the highly robust economics shown by the Project’s new Scoping Study, Savannah has a great foundation from which to take the Barroso Lithium Project forward.  In progressing the Project, we will also look to convert the strong commercial interest that the Project has enjoyed to date into long term relationships with specific offtake and strategic partners over the coming months. Given the strategic value to consumers of securing a long-term source of spodumene concentrate in Europe, we will be seeking relationships in which our commercial partners make a major contribution to the funding of the Project’s development in return for the product they will receive.

“My thanks once again to all our shareholders, we look forward to updating them with regular news as Savannah builds its position, and that of Portugal, as a long term, responsible producer of lithium raw material for Europe’s battery value chain.”

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 of the 130,355,643 Placing and Subscription Shares which is expected to become effective and dealings in the Placing Shares commence at 8.00 a.m. on 19 July 2023.

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 19 June 2023.

A further announcement regarding the Admission of the PrimaryBid Shares will be made in due course.

Related Party Participation in the Subscription

Four Directors have subscribed for an aggregate of 1,713,060 Subscription Shares at the Issue Price for an aggregate amount of approximately £80,000 as set out below:

*Mr Dale Ferguson, the Company’s CEO, is also a Director of and minority shareholder in Slipstream Resources Investments Pty Ltd.

In addition, Al Marjan Limited, a substantial shareholder in the Company, represented on the Board by Mr Imad Sultan, subscribed for 7,500,000 Subscription Shares at the Issue Price.

The updated percentage holdings of the Company’s Directors and significant shareholders will be disclosed in due course along with the result of the PrimaryBid Offer.

Related Party Transaction

Matthew King, Dale Ferguson, James Leahy, Diogo Da Silveira, and Al Marjan Limited are, respectively, Directors of and a substantial shareholder in the Company (the “Related Parties”) and their participation in the Subscription constitutes a related party transaction in accordance with AIM Rule 13. Mary Jo Jacobi and Manohar Shenoy are not participating in the Subscription and are therefore considered independent Directors for these purposes, having consulted with the Company’s Nominated Adviser, consider the terms of the Related Parties’ participation in the Subscription to be fair and reasonable insofar as Savannah’s shareholders are concerned.

Note

Defined terms used in this announcement shall have the same meaning as in the Launch Announcement dated 13 July 2023 unless otherwise defined herein.