Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV) (‘Savannah’ or ‘the Company’), the AIM quoted resource development company, announces that further to the recent placing and subscription to raise £3.76 million.
(before expenses), as announced on 16 September 2019 (the ‘Placing’), Al Marjan Ltd (‘Al Marjan’), the Company’s largest shareholder, has now subscribed for 60,000,000 new ordinary shares of 1p each in the Company (‘Ordinary Shares’) at a price of 2p per Ordinary Share (the ‘LoI Subscription Shares’), along with other subscribers raising cash proceeds of £1.24 million (the ‘LoI Subscription’).
Savannah’s CEO, David Archer said: “In the June 2019 Interim Accounts, the Company’s Chairman, Matthew King, rightly acknowledged that particular thanks goes to the Al Marjan Group which remains the Company’s largest shareholder, after its £1.2m commitment to the September financing. Furthermore, companies which have received such solid support from Directors and related parties (“Directors”) are rather rare amongst those within our peer group – the total net cash investment by the Directors is an impressive £9.8 million cash to date, and the direct and indirect interest held by Directors and management represents 28.8% of the shareholder register.”
Details of the LoI Subscription
· Al Marjan holding to stand at 20.68% following its LoI Subscription for £1.2 million for 60,000,000 LoI Subscription Shares.
· Alternate Director, Manohar Pundalik Shenoy, is subscribing for 2,000,000 LoI Subscription Shares for £40,000, and an employee for 100,000 LoI Subscription Shares for £2,000.
· As previously announced, the proceeds of the LoI Subscription, when aggregated with the net Placing proceeds the Company has already received, will predominantly be used to complete the Definitive Feasibility Study (the ‘DFS’) on the Mina do Barroso Lithium Project located in northern Portugal – the Company’s flagship project – and will also be used to maintain its projects in Mozambique and Oman, which are currently undergoing finalisation of mining lease applications, as well as for general working capital purposes.
Related Party Transaction
The subscriptions by Al Marjan and Mahohar Pundalik Shenoy are deemed to constitute Related Party transactions in accordance with AIM Rule 13 of the AIM Rules for Companies (the “Transaction”). Matthew King, David Archer, Dale Ferguson and James Leahy, who are directors independent of the Transaction consider, having consulted with the Company’s Nominated Adviser, the subscriptions of Al Marjan and Manohar Pundalik Shenoy to be fair and reasonable insofar as Savannah’s shareholders are concerned.
Voting Rights and Regulatory Information
Application will be made for the 62,100,000 LoI Subscription Shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM (‘Admission’). It is expected that Admission will become effective and dealings will commence at 8:00am on or around 3 October 2019.
Following Admission of the LoI Subscription Shares, the Company’s total issued share capital will consist of 1,297,459,820 Ordinary Shares. As such the total number of voting rights in the Company will be 1,297,459,820 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 in, or a change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.
The notifications in appendix 1, made in accordance with the requirements of the EU Market Abuse Regulation (Regulation (EU) 596/2014), provides further detail.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
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