Savannah receives reassuring legal reviews
30 January 2024
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')
Operation Influencer: Reassuring conclusions from Independent Legal Reviews
Savannah Resources Plc, the developer of the Barroso Lithium Project (the 'Project') in Portugal, Europe's largest spodumene lithium deposit, provides an update on the actions it has taken in response to the investigation launched by the Portuguese Public Prosecutor's Office ('PPO') on 7 November 2023 ('Operation Influencer', the 'Investigation').
Summary
Following receipt of a full legal assessment which included due diligence by independent experts of relevant accounts, facts and documents in Savannah's possession, Savannah can confidently reaffirm its solid legal standing. The Independent Review (as defined below) concludes based on the evidence examined that there was no improper use of Company money or evidence of wrongdoing by the Company. The Legal Opinions (as defined below) conclude that Savannah's ability to deliver the Project and generate future cash flows from it would not be affected by the Investigation's findings. As it awaits new steps in the Investigation, Savannah will continue to progress its Project unencumbered while remaining ready to cooperate fully with the Portuguese authorities should the Company be required to do so.
Actions taken by Savannah:
· Commissioned CMS Portugal (Rui Pena, Arnaut e Associados, RL), part of the internationally renowned law group CMS, to conduct an independent review (the 'Independent Review') of the Company's activities between 1 January 2017 and 31 October 2023 in relation to Operation Influencer[1].
· Commissioned additional legal opinions (the 'Legal Opinions') from a renowned Portuguese legal expert in constitutional and penal law, and also from the specialist Portuguese law firm, Gama Glória.
Main conclusions reached:
The Independent Review found no evidence which would give rise to liability of the Company in connection with any irregular financial transactions by the Company. It also found no evidence of improper offers, improper payments, or other forms of wrongdoing by the Company in regard to the suspicions set out in the Investigation associated with: past relations with a potential partner, discussions on the by-pass road, royalties, or in relation to interactions with national entities in the EIA process under Article 16. No material legal risk was identified related to the alleged facts and circumstances outlined in the Investigation.
The Legal Opinions have confirmed that, based on the findings of the Independent Review, but also on the functioning of the Portuguese permitting process, past legal experience, and constitutional protections, under no realistic circumstance would the Project's execution and its expected future cash flows be at risk from the Investigation's findings.
The conclusions of the Independent Review and the Legal Opinions demonstrate Savannah's solid legal position in relation to the alleged facts and circumstances contained in Operation Influencer. These conclusions support Savannah's previous statements that its business is always conducted in a fully lawful manner, based on robust systems and controls the Company has in place.
Other developments:
Savannah has had no further engagement with the investigating authorities since 7 November 2023 and has continued with all its business activities.
On 21 December 2023, the PPO announced that the Investigation was being split into three separate investigations (by industry), with one now covering the two lithium projects. Savannah can confirm that it has no relationship with the other lithium project involved. Based on past similar cases, the timeline for next steps is uncertain and likely to be long, and a formal clearing or accusation is not expected in the near term.
Savannah's Chief Executive Officer, Emanuel Proença said,
"Today's announcement sets out the actions we have taken to re-establish confidence. While the Investigation may draw on evidence not available to the Independent Review, and although further steps are to be expected, the conclusions of the Independent Review and the Legal Opinions are clear and sound, and I trust that they will reassure our stakeholders. I'll say clearly: Savannah's legal standing is strong. The Project's Mining Lease remains in good standing, development of the Project will continue, and we believe it will deliver its expected results. The region and its people will benefit from it; and Portugal will play a key role in Europe's new lithium battery value chain.
"Operation Influencer has attracted much interest, both within Portugal and overseas. Throughout this period our team has shown great resolve to deal with the additional pressure and has worked extremely hard to ensure we continue to progress the Project. Savannah stands ready to fully engage with the Portuguese legal authorities as and when required. In the meantime, we will focus on rebuilding the impact this had on the perception of Savannah and on the matters within our control which can bring meaningful value accretion to our Project and assure meaningful socio-economic benefits for the region."
Further background information on Operation Influencer, based on confirmed public information, will be posted onto Savannah's website.
Regulatory Information
This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
Savannah - Enabling Europe's energy transition.
**ENDS**
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For further information please visit www.savannahresources.com or contact:
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Savannah Resources PLC Emanuel Proença, CEO |
Tel: +44 20 7117 2489
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SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker) David Hignell/ Charlie Bouverat (Corporate Finance) Grant Barker/Abigail Wayne (Sales & Broking)
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Tel: +44 20 3470 0470
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SCP Resource Finance (Joint Broker) Filipe Martins/Chris Tonkin |
Tel: +44 204 548 1765 |
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Camarco (Financial PR) Gordon Poole/ Emily Hall / Fergus Young |
Tel: +44 20 3757 4980 |
About Savannah
Savannah Resources is a mineral resource development company and the sole owner of the Barroso Lithium Project in northern Portugal, the largest battery grade spodumene lithium resource outlined to date in Europe.
Through the Barroso Lithium Project (the 'Project'), Savannah will help Portugal to play an important role in providing a long-term, locally sourced, lithium raw material supply for Europe's rapidly developing lithium battery value chain. After the Environmental Licence was granted in May 2023 and the Scoping Study confirmed the economic potential of the Project in June 2023, production is now targeted and on track to begin in 2026. At that stage, Savannah will start producing enough lithium for approximately half a million vehicle battery packs per year, equal to a significant portion of the European Commission's Critical Raw Material Act goal of a minimum 10% of European endogenous lithium production set for 2030. Savannah is focused on the responsible development and operation of the Barroso Lithium Project so that its impact on the environment is minimised and the socio-economic benefits that it can bring to all its stakeholders are maximised.
The Company is listed and regulated on the London Stock Exchange's Alternative Investment Market (AIM) and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".
[1]For the execution of the independent audit, Savannah offered CMS access to information of Savannah, including (but not only) contacts with external parties. Relevant financial transactions within Savannah, email databases and Company records were scrutinised, and confirmatory interviews with staff from various levels of the Company were performed. Disclaimer: no other person may or should rely on this summary of CMS' report or the fact of CMS Portugal (Rui Pena, Arnaut e Associados, RL) appointment or work product in whatever form for any purpose whatsoever.
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