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LONDON (Alliance News) - Savannah Resources PLC said Thursday it raised GBP11.5 million in cash via placing and subscription of 128.3 million shares.
Savannah shares were trading down 7.0% at 10.28p each.
The company issued 92.5 million shares at 9 pence each and received commitments to subscribe for further 35.8 million shares at the same price.
Furthermore, Savannah said it received a letter of intent from its major shareholder Al Marjan Ltd for a further GBP1 million, taking the proceeds to GBP12.5 million.
The company said it will use the proceeds from the placing to support the next stage of development for its Mina do Barroso Lithium project in Portugal.
Chief Executive Officer David Archer said: "The funds raised will allow us to continue to fast-track the development of our Mina do Barroso Lithium Project, which has the potential to be the leading European producer of spodumene lithium.
"The net funds raised will enable us to advance our project in Portugal through a feasibility study, with a view to making a final development decision early next year."
Following admission, the total issued share capital of the company will consist of 830.0 million shares with the new shares representing 15.5% of the company.