Savannah Resources raises £1.42m in placing

(ShareCast News) - Resource development company Savannah Resources announced on Monday that it has raised approximately £1.42m, before expenses, through the placing of 28,208,973 new ordinary shares and subscription for 12,500,000 new ordinary shares at a placing price of 3.5p per share, with both new and existing investors.The AIM-traded firm said Beaufort Securities acted as broker to the placing, which was significantly oversubscribed.Its board said the funds are to be used predominantly to support the development of Savannah's copper projects in Oman, with mining targeted to commence in late 2017, and for working capital purposes at its newly acquired lithium projects in FinlandIt said letters of intent had also been received for additional £0.83m cash from directors and their related parties, for when the company has exited its current close period."This significantly oversubscribed placing of £1.42m demonstrates the support we are receiving from new and existing shareholders in our strategy to bring our copper projects in Oman to production late next year, pursuing our projects in Mozambique as well as unlocking the potential of our exciting new lithium projects in Finland," said CEO David Archer.He said the company had recently announced it has applied for mining licences in Oman for its Mahab 4 and Maqail South Deposits in Block 5, and following that it is now expecting an updated Mineral Resource in Q4."We hope [this updated resource] will further improve our current indicated and inferred Mineral Resource of 1.7Mt at 2.2% copper as a result of our recent intensive drill programme," Archer explained."Further updates will be made to the market as we progress towards the mine development stage."