TIDMSAV
RNS Number : 6125U
Savannah Resources PLC
25 October 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
25 October 2017
Savannah Resources Plc
Cash Subscriptions of GBP3.91 million
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, announces that it has
raised approximately GBP3.91 million cash (before expenses) through
the subscription by both new and existing investors (the
'Subscription') of 74,433,232 new ordinary shares ('Subscription
Shares') at a placing price of 5.25p per ordinary share (the
'Subscription Price') as well as the issue of one warrant for every
two new Subscription Shares with each warrant having an exercise
price of 6.0p and a term of three years (the 'Warrants'). To view
the press release with the diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6125U_-2017-10-25.pdf
HIGHLIGHTS:
-- Raised gross proceeds of approximately GBP3.91 million cash
-- Funds to be used to advance portfolio of projects including:
o further resource drilling at the Mina do Barroso Lithium
Project in Portugal with the aim of delivering an initial Mineral
Resource Estimate;
o completion of a scoping study ahead of commencing mining in H1
2018 at the Company's copper project in Oman; and
o advancing the pre-feasibility study and commissioning of the
pilot plant at the Mutamba Heavy Mineral Sands Project in
Mozambique.
David Archer, Savannah's Chief Executive Office said today, "The
placement evidences the continued strong support for the Company of
our cornerstone shareholder, Al Marjan Ltd, and from a number of
existing and new shareholders. The funds raised will support our
near term copper development objectives for Oman, an increasing
tempo of activity at our lithium project in Portugal and our
pre-feasibility study and pilot plant construction in Mozambique.
With this placement we are well positioned to move confidently into
2018."
Figure 1: Drill rig at NOA prospect at Mina do Barroso
Details of the Subscription
The Company will have a pro-forma cash balance of GBP4.84
million following the receipt of the Subscription proceeds of
GBP3.91 million, specifically:
-- Al Marjan Ltd, the Company's largest shareholder, shall have
increased its shareholding to 29.39% with a cash subscription of
GBP1.21 million; and
-- Mr. Husain Salman Ghulam Al-Lawati, a prominent Omani
business person, has taken a 5% shareholding in the Company.
The net proceeds of the Subscription will be used by Savannah to
advance its pipeline of projects. This includes further drilling at
the Mina do Barroso Lithium Project in Portugal, where an ongoing
Reverse Circulation drill programme will help define a Mineral
Resource Estimate as a basis for a scoping study. Additionally, the
funds raised will be used to advance the Company's copper mine
development in Oman. Funds raised will also be used for the
preliminary feasibility study ('PFS') and finalise the
commissioning of the pilot plant at the Mutamba Heavy Mineral Sands
Project in Mozambique.
The Company will also convene a General Meeting at which
shareholders will be asked to give the directors the necessary
authorities to issue new ordinary shares of 1p each ('Ordinary
Shares') in the future. The Subscription and the issue of the
Subscription Shares announced today shall not be contingent upon
the results of the proposed General Meeting, since they are issued
out of the existing headroom granted to directors at the last
general meeting. Details of the General Meeting will be announced
separately and a notice of General Meeting will be sent to
shareholders in due course.
Related Party Transaction
Al Marjan is a substantial shareholder of the Company, as such
Al Marjan's subscription for Subscription Shares (the 'Al Marjan
Subscription') constitutes a related party transaction in
accordance with AIM Rule 13. Matthew King, David Archer, and Dale
Ferguson, who are not subscribing for Subscription Shares and are
therefore independent directors for these purposes, having
consulted with the Company's Nominated Adviser, consider the terms
of the Al Marjan Subscription to be fair and reasonable insofar as
Savannah's shareholders are concerned.
Voting Rights and Regulatory information
Application will be made for the 74,433,232 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 31 October 2017. The Warrants are due to be
issued one business day following Admission, vesting immediately,
having an exercise price of 6.0p, and being exercisable within
three years from the date of issue.
Following the Admission of the Subscription Shares, the
percentage holding of certain significant shareholders will
increase as per the table below:
Shareholder Holding Percentage Number Holding Percentage
Prior of Ordinary of Subscription Following of Ordinary
to the Shares Shares Subscription Shares
Subscription prior Subscribed Following
to the for Subscription
Subscription
------------------- -------------- -------------- ----------------- -------------- --------------
Al Marjan
Ltd 163,750,179 29.17% 23,128,571 186,878,750 29.39%
------------------- -------------- -------------- ----------------- -------------- --------------
Husain Salman
Ghulam Al-Lawati nil nil 31,792,519 31,792,519 5.00%
------------------- -------------- -------------- ----------------- -------------- --------------
Karl-Erik
von Bahr 20,523,380 3.66% 1,750,000 22,273,380 3.50%
------------------- -------------- -------------- ----------------- -------------- --------------
Rémy
Welschinger 17,098,759 3.05% 1,350,000 18,448,759 2.90%
------------------- -------------- -------------- ----------------- -------------- --------------
Following Admission, the total issued share capital will consist
of 635,850,386 Ordinary Shares. As such, the total number of voting
rights in the Company will be 635,850,386 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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014. Market soundings, as
defined in MAR, were taken in respect of the Subscription with the
result that certain persons became aware of inside information, as
permitted by MAR. That inside information is set out in this
announcement and has been disclosed as soon as possible in
accordance with paragraph 7 of article 17 of MAR. Therefore, those
persons that received inside information in a market sounding are
no longer in possession of inside information relating to the
Company and its securities.
**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 (Joint 7220 0500
Broker)
Jon Belliss Beaufort Securities Tel: +44 20
(Joint Broker) Ltd 7382 8300
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Wadham Ltd 7236 1177
About Savannah
Notes
We are a diversified resources group (AIM: SAV) with a portfolio
of energy metals projects - lithium in Portugal and copper in Oman
- together with the world-class Mutamba Heavy Mineral Sands Project
in Mozambique, which is being developed in a consortium with the
global major Rio Tinto. We are committed to serving the interests
of our shareholders and to delivering outcomes that will improve
the lives of our staff and the communities we work with.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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