LONDON (Alliance News) - Savannah Resources PLC on Wednesday said it has agreed with mining major Rio Tinto PLC to extend the deadline by which the pair must complete the proposed joint venture agreement for their respective heavy mineral sands projects in Mozambique.
AIM-listed Savannah and FTSE 100-constituent Rio Tinto have extended the deadline to September 30 from June 30, having previously pushed the deadline back to the end of March and, before that, to October 19, 2015.
Under the deal agreed in June 2015, Savannah's Mutamba, Dongane and Jangamo heavy mineral sands prospects, together called the Jangamo project, will be combined with Rio Tinto's Chilubane project.
Those prospects border one another, and Savannah will operate the joint venture and have the ability to earn up to a 51% stake in the newly combined project by conducting the scoping, pre-feasibility and feasibility studies.
Savannah shares were up 6.8% at 2.99 pence on Wednesday. Rio Tinto shares were up 2.1% at 2,178.00p.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Rio Tinto (RIO)
Savannah Resources (SAV)
