(Alliance News) - Savannah Resources PLC on Tuesday reported continued progress on key workstreams, and "confidently" reaffirmed its legal position in response to the 'Operation Influencer' investigation in Portugal.
The lithium development company, which is focused on its Barroso project in northern Portugal, said it "can confidently reaffirm its solid legal standing" following a full independent review by CMS Portugal.
Savannah Resources also obtained additional legal opinions from specialist law firm Gama Gloria and "a renowned Portuguese legal expert".
The CMS review concluded "based on the evidence examined that there was no improper use of company money or evidence of wrongdoing by the company".
Savannah said the review "found no evidence which would give rise to liability of the company in connection with any irregular financial transactions by the company".
Additionally, CMS Portugal "found no evidence of improper offers, improper payments, or other forms of wrongdoing by the company in regard to the suspicions set out in the investigation associated with: past relations with a potential partner, discussions on the by-pass road, royalties, or in relation to interactions with national entities".
Savannah Resources said the additional legal opinions, meanwhile, confirmed that "under no realistic circumstances" would the investigation's findings put the Barroso project's execution or anticipated future cash flows at risk.
"I'll say clearly: Savannah's legal standing is strong," proclaimed Chief Executive Officer Emanuel Proenca. "The project's mining lease remains in good standing, development of the project will continue, and we believe it will deliver its expected results."
Savannah Resources expects to continue work at Barroso "unencumbered" while the investigation progresses, "while remaining ready to cooperate fully with the Portuguese authorities" if necessary.
Also on Tuesday, Savannah Resources said the strategic partnering process for Barroso was moving forwards as expected, and that it still expects to complete the definitive feasibility study in the second half of 2024.
The company added that all nine of the planned hydrogeology boreholes are complete, as is 2,531 metres of reverse circulation and diamond drilling. It also said that engagement with local communities is progressing well.
"2024 is set to be a very important year for the company with critical news flow expected," Proenca commented.
Shares in Savannah Resources were trading 1.1% lower at 1.88 pence in London on Tuesday afternoon.
By Emma Curzon, Alliance News reporter
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Savannah Resources (SAV)