TIDMSAV
RNS Number : 4674O
Savannah Resources PLC
21 August 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
21 August 2017
Savannah Resources Plc
Issue of Shares in Connection with Acquiring Full Ownership of
Matilda Minerals Limitada and Share Option Issue
Savannah Resources Plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, is pleased to announce
that it has increased its interest in Matilda Minerals Limitada
('Matilda'), which holds the prospecting rights in the 180km(2)
Jangamo heavy mineral sands tenement in Mozambique (which is part
of the Mutamba Heavy Minerals Sands Project and subject to the
Company's previously announced Consortium Agreement with Rio
Tinto), to 100%, by way of the acquisition of a further 20% equity
interest in the entity. This 20% interest has been secured in
consideration of AUD100,000 (GBP60,000) payable by issue of
1,194,074 ordinary shares of 1p in the Company ('Ordinary Shares')
at an issue price of 5.056p (calculated by reference to 30 day
volume weighted average as above) (the 'Transfer Shares').
As part of this acquisition, Savannah announces that it has
agreed with the vendors of Matilda to cancel the deferred
consideration terms detailed in the Company's RNS on 9 September
2013, for consideration of AUD50,000 (GBP30,000) payable by issue
of 597,037 Ordinary Shares at an issue price of 5.056p (being the
Company's 30 day volume weighted average price for the 30 dealing
days prior to the date of approved issue) (together with the
Transfer Shares, the 'Consideration Shares').
Savannah's CEO, David Archer said: "We're pleased to have
reached agreement with the vendors of Matilda to eliminate the
deferred consideration obligations from the 2013 acquisition and
also to finalise the purchase of the 20% not already owned by
Savannah. I am pleased to confirm that this transaction has been
approved by the Mozambique Ministry of Mineral Resources, which has
been very supportive of our activities in country."
Details of Consideration Shares Issue
Application will be made for the Consideration Shares, which
shall rank pari passu with the existing Ordinary Shares in the
Company, to be admitted to trading on AIM ('Admission'). It is
expected that Admission will become effective and dealing will
commence at 8:00am on or around 24 August 2017.
Following Admission, the Company's total issue share capital
will consist of 561,417,154 Ordinary Shares. As such, the total
number of voting rights in the Company will be 561,417,154 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.
Issue of Share Options
The Company has also granted options over 500,000 Ordinary
Shares ('Share Options'). The Share Options are being issued to a
member of the Company's management in recognition of both his
significant contribution towards progressing Savannah's portfolio
of development projects in 2017 and also as part of the Company's
policy to retain talented personnel.
The Share Options have an exercise price of 6.24p, an exercise
period limit of four years subject to performance related
milestones, including obtaining a mining licence for the Mutamba
Project in Mozambique. The exercise price represents a premium of
35% to the closing price on 17 August 2017.
Regulatory Information
Of the Consideration Shares, 1,552,296 will be issued to John
Paul O'Donoghue: Savannah's African Operations General Manager and
co-founder of Matilda. Following the issue of the Consideration
Shares, Mr. O'Donoghue will be the beneficial owner of 3,137,878
Ordinary Shares in Savannah, representing 0.55% of the Company's
total voting rights.
This announcement contains insider information for the purposes
of Article 7 of Regulation (EU) 596/2014.
** ENDS **
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Christopher Raggett finnCap Ltd Tel: +44 20
/ Emily Morris 7220 0500
(Corporate Broker)
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Brocklehurst Ltd 7236 1177
About Savannah
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in
Mozambique in collaboration with Rio Tinto, which has an
established initial Indicated and Inferred Mineral Resource
Estimate of 4.4 billion tonnes at 3.9% THM over the Jangamo,
Dongane and Ravene deposits.
Oman
Savannah has interests in two copper blocks in the highly
prospective Semail Ophiolite Belt in Oman. The projects, which have
an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper
and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold
credits, provide Savannah with an excellent opportunity to
potentially evolve into a mid-tier copper and gold producer in a
relatively short time frame. Together with its Omani partners,
Savannah aims to outline further mineral resources to provide the
critical mass for a central operating plant to develop the deposits
and in December 2015 outlined exploration targets of between
10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4%
copper.
Portugal
Savannah holds a 75% interest one mining licence and nine
prospective applications for the exploration and development of
lithium, covering an area in excess of 1,018km(2) in northern
Portugal. This includes the highly strategic Mina do Barroso
prospect, which with an approved Mining Plan ('MP'), Environmental
Impact Assessment ('EIA') and a 30-year mining concession/Mining
Licence ('ML'), means that with a defined JORC resource a
development decision could be made as early as Q4 2018.
Finland
Savannah has Reservation Permits over two lithium projects,
covering an area of 159km(2). Geological mapping has highlighted
the presence of seven pegmatites with key lithium minerals
petalite, spodumene and lepidolite all identified.
This announcement is based upon information compiled by Mr Dale
Ferguson, Technical Director of Savannah Resources Limited. Mr
Ferguson is a Member of the Australian Institute of Mining and
Metallurgy (AusIMM) and has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the December 2012
edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (JORC Code). Mr
Ferguson consents to the inclusion in the report of the matters
based upon the information in the form and context in which it
appears.
This announcement is based upon information compiled by Mr Colin
Rothnie, an independent consultant. Mr Rothnie is a Member of the
Australian Institute of Mining and Metallurgy (AusIMM) and has
sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the December 2012 edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (JORC Code). Mr Rothnie consents to the inclusion in the
report of the matters based upon the information in the form and
context in which it appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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