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(Alliance News) - Savannah Resources PLC on Friday said it raised GBP6.1 million, bolstering its coffers as it looks to develop a lithium project in Portugal.
The lithium development company said it raised GBP2.4 million through the placing of 51.2 million shares at 4.67 pence each, alongside GBP3.7 million through the subscription of 79.2 million shares at the same price.
Following the fundraise, Savannah Resources said it now has around GBP11 million in cash reserves, allowing it to "move forward with great confidence" on its plans for the Barroso lithium project in northern Portugal.
"It is a pleasure to welcome a number of new institutional investors onto our register, including some natural resource sector specialists. It is also very pleasing to continue to add to the international nature of our share register as we welcome more shareholders from Europe and Australasia while also building on our firm foundation of UK shareholders," said Chief Executive Officer Dale Ferguson.
"I am also looking forward to the opportunity to build our team as Savannah moves towards the potential construction phase of the project and needs additional skills sets and resources. This funding allows us to start that process as we look to make key hires."
Ferguson noted the company will also look to build more ties with local businesses in order to seek supply goods and services to the project during its construction and operating phases.
Ferguson continued: "Given the strategic value to consumers of securing a long-term source of spodumene concentrate in Europe, we will be seeking relationships in which our commercial partners make a major contribution to the funding of the project's development in return for the product they will receive."
Shares in Savannah Resources were up 2.1% to 4.70 pence each in London on Friday morning.
In May, the company received a positive declaration of environmental impact from the Portuguese environmental regulator, Agencia Portuguesa do Ambiente, for its wholly-owned Barroso lithium project in northern Portugal.
Following this, Savannah Resources announced a new scoping study, "which demonstrated encouraging project economics with the potential to deliver substantial value for Savannah's shareholders".
By Greg Rosenvinge, Alliance News reporter
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