(Alliance News) - Savannah Resources PLC on Thursday said it plans to raise GBP5.8 million, in order to boost its Barroso lithium project in northern Portugal.
The fundraise includes a GBP2.3 million placing of 50.7 million shares and a GBP3.5 million subscription of 75.2 million shares. The shares will be priced at 4.67 pence each, representing a 0.6% discount to the shares' closing price of 4.70p on Wednesday.
Shares in the London-based lithium development company closed down 2.1% at 4.60p each on Thursday.
Savannah Resources also announced a primary bid offer to "raise additional funds", but it did not say how much it plans to raise.
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."
"Following these milestones, the directors believe the fundraise will accelerate the key workstreams required to complete the project's definitive feasibility study, whilst also enabling Savannah to expand its team in Portugal," the company said.
By Sophie Rose, Alliance News reporter
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Savannah Resources (SAV)