Cash Placing of £0.55 Million
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
29 June 2015
Savannah Resources Plc
Cash Placing of £0.55 Million
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), advises that it has raised approximately £0.55 million cash (before expenses) through the placing ('Placing') of 21,900,000 new ordinary shares at a placing price of 2.5p per ordinary share ('Placing Shares') with both new and existing investors. RFC Ambrian Limited acted as broker to the Placing.
Savannah's Chief Executive Officer, David Archer, said, "The announcement of the joint venture with Rio Tinto over the Mutamba/ Jangamo Project on Monday, 22 June marks a major step change for Savannah. Today's placement will be directed at funding activities that are designed to result in the achievement of a series of major milestones in 2015. For example, in the case of the newly announced Mutamba/Jangamo Project the definition of a JORC Mineral Resource and, later in the year, the completion of a scoping study that will define the high level parameters around a potential mine development.
"With these funds, which are being raised at a premium of 25% to the 20 day VWAP prior to the Rio Tinto joint venture announcement, Savannah is well placed to deliver on these objectives."
Details of Placing
Application will be made for the Placing shares, which will 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 dealings will commence at 8.00 a.m. on 2 July 2015.
Following Admission the total issued share capital will consist of 249,401,573 ordinary shares. As such the total number of voting rights in the Company will be 249,401,573 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.
The net proceeds of the Placing will be used by the Group to fund work on the recently announced joint venture with Rio Tinto comprising the Mutamba/Jangamo heavy minerals sands project in Mozambique, including the definition of a JORC compliant resource and completion of the scoping study, as well as for general working capital purposes to support the Company.
The Company will have a pro-forma cash and tradeable securities position of £1.24 million following the issue and Admission of the Placing Shares for gross cash proceeds of £547,500.
**ENDS**
For further information please visit www.savannahresources.com or contact:
|
David Archer |
Savannah Resources plc |
Tel: +44 20 7389 5019 |
|
Samantha Harrison (Nominated Adviser) Charlie Cryer (Corporate Broker) |
RFC Ambrian Limited |
Tel: +44 20 3440 6800 |
|
Felicity Winkles/ Charlotte Heap |
St Brides Partners Ltd |
Tel: +44 20 7236 1177 |
**ENDS**
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.
Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo Project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).
Savannah has interests in three 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 additional gold upside potential, 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.
This information is provided by RNS
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