Savannah Resources Share News (SAV)

LONDON (Alliance News) - Savannah Resources PLC said Tuesday it has raised GBP1.5 million in cash after both new and existing investors subscribed for shares in the company.

Savannah issued 27.6 million new shares at a price of 5.50 pence each, with shares down 2.6% on Tuesday at 5.70p.

The company has also got letters of intent for a further GBP580,000 worth of shares, giving total potential proceeds of GBP2.1 million.

The funds will be used to press ahead with continued resource definition drilling, as well as for the scoping study, at Savannah's Mina do Barroso lithium project in Portugal.

It will also go towards pushing on with work to start copper production in Oman as well as complete the preliminary feasibility study for its Mutamba heavy mineral sands project in Mozambique.

Chief Executive David Archer commented: "The oversubscribed fundraise evidences the continued strong support from both our cornerstone shareholder, Al Marjan Ltd, and from a number of other existing and new shareholders."

Shares were down 2.6% on Tuesday at 5.70 pence each.