Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), the resource development company, is pleased to announce its audited financial results for the year ended 31 December 2020.
2020 Summary:
Mina do Barroso Lithium Project, Portugal
• Submitted the Project’s Environmental Impact Assessment and Mine Plan to the Portuguese authorities for the Environmental Licencing process
• Advanced negotiations around the Project’s future commercialisation
• Continued with the metallurgical test work programme in Australia and desk-based project design tasks while field work was restricted by COVID-19
• Continued with widespread stakeholder engagement while observing COVID-19 restrictions
Mutamba Mineral Sands Project, Mozambique
• Received the 3rd and final Mining Concession Licences covering the project’s 4.4Bt resource
• Initiated work programmes to meet the Mining Licence obligations
• Initiated a review to identify the best technical and corporate development options available
Block 4 & 5 Copper Projects, Oman
• Divested Savannah’s majority stakes in these non-core assets to ASX-listed Force Commodities Ltd; the transaction structure gives Savannah ongoing exposure to the projects
Corporate
• Introduced COVID secure working practices and additional business mitigation measures to protect our staff, stakeholders and the Group from the impacts of COVID-19
• Qualified to receive support from the Business Investment Platform initiative managed by EIT InnoEnergy, coordinator of the European Commission’s European Battery Alliance
• Completed an oversubscribed £2.3m (gross) equity financing
• Loss from continuing operations of £2.9m (2019: £3.6m); overall loss including non-cash adjustment to intangible assets associated with Oman divestment £8.3m (2019: £3.8m)
• Year-end cash position of £2m
Subsequent Events & 2021 Outlook
Mina do Barroso Lithium Project, Portugal
• Public consultation on the EIA initiated in April 2021; Key milestone of ‘Declaration of Environmental Impact’ expected later this year
• Received increasing investment and offtake interest in parallel with H1 2021 lithium price recovery; announced Heads of Agreement (‘HoA’) on offtake and project-level investment announced with Galp Energia SGPS, S.A (‘Galp’) in January 2021
• Amid a backdrop of increased interest, the HoA expired on 31 May 2021, allowing Savannah to fully evaluate its strategic options for the project against the improved market conditions
· Subject to ongoing COVID-related restrictions, complete the project’s Definitive Feasibility Study in support of securing construction financing
· Adding to our in-house team in preparation for the development of Mina do Barroso
Mutamba Mineral Sands Project, Mozambique
• Maintain the licences in good standing, complete the current technical and corporate review and action its findings
Corporate
· Completed an oversubscribed £10.3m (gross) equity financing in April 2021
· Creating a Corporate Environmental and Social Management System (‘ESMS’)
· Seeking to expand Savannah’s interests in the lithium sector beyond Mina do Barroso
To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5036A_1-2021-6-1.pdf
Availability of Annual Report and Financial Statements
Copies of the Company’s full Annual Report and Financial Statements are expected to be posted to shareholders shortly and will also be made available to download today from the Company’s website www.savannahresources.com.
Annual General Meeting
The Company gives notice that its Annual General Meeting (‘AGM’) will be a closed meeting due to UK Government COVID-19 restrictions, it will be held at 10:00 on 30 June 2021 at the Company’s registered office, Salisbury House, London Wall, London, EC2M 5PS. As a result, shareholders will not be permitted to attend the AGM in person and should therefore vote by proxy.
The Board continues to monitor the evolving COVID-19 situation and the safety and security of our workforce and our shareholders remains paramount. We appreciate that shareholders and their corporate representatives or proxies may wish to raise questions and comments, therefore the Company will hold a webcast meeting at 11:00 on 30 June 2021 which will include a short presentation from David Archer, Chief Executive Officer. Shareholders are invited to submit appropriate questions by email to [email protected] by 17:00 (UK time) on 24 June 2021.
The formal notice of the 2021 AGM has been posted to shareholders and is available to review on the Company’s website at
http://www.savannahresources.com/investor-relations/corporate-documents/.
Further details regarding the webcast will be made available in due course.
Regulatory Information
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
