Savannah Resources PLC is raising £5 million in cash to fund the completion of a definitive feasibility study for its Mina do Barroso lithium project in northern Portugal.
The company said Sept. 16 that it raised about £3.8 million through a placing of 161.40 million new shares and subscription of 26.5 million shares, priced at 2 British pence apiece.
Savannah also received letters of intent for a further investment of £1.2 million, mainly from its major shareholder Al Marjan Ltd. The investors will subscribe for another 62.1 million shares.
The definitive feasibility study, which will incorporate additional mineral resources delineated in 2019 into the mine plan, is expected to be completed in the second quarter of 2020.
The company also said discussions regarding concentrate off-take from the project are ongoing with multiple parties.
Savannah took full control of the Mina do Barroso project in June by acquiring a 25% minority interest from Slipstream Resources Investments Pty. Ltd. for 163 million shares, valued at about US$11.9 million.
