JOHANNESBURG (miningweekly.com) – Aim-quoted Savannah Resources has potentially raised £2.1-million in gross proceeds for its project pipeline in Africa and Europe, the company reported on Tuesday.
The fundraising comprised new and existing investors subscribing for 27 636 361 new shares at 5.5p a share, for gross proceeds of £1.52-million.
Savannah, which is currently in a closed period that restricts directors and applicable employees from trading in its shares, has also received letters of intent for a further £580 000. If the letters of intent are acted upon when the company exits the closed period, Al Marjan, the company’s largest shareholder, will have a shareholding of 28.2% following a subscription of £565 000.
The net proceeds of the fundraising would be used for drilling at the Mina do Barroso lithium project, in Portugal, where reverse circulation and diamond core drilling programmes are under way.
The funds raised will also be used to advance the company's copper mine development in Oman, as well as for the preliminary feasibility study of the Mutamba heavy mineral sands project, in Mozambique.