(Alliance News) - Savannah Resources PLC on Monday hailed the conditional award of a third mining concession at the Mutamba mineral sands project in Mozambique.
Concession 9228C was given to Mutamba Mineral Sands SA, a subsidiary of FTSE 100-listed Rio Tinto, which is partnering with Savannah at the project.
The award is still subject to customary "administrative conditions", Savannah noted.
The concession, valid until September 2044, covers an area of 11,807 hectares, about 118.1 square kilometres.
Savannah already holds the 9735C and 9229C concessions which cover ground in Inharrime and Jangamo, districts in southern Mozambique.
Chief Executive David Archer said: "The conditional award of the third mining concession to Mutamba Minerals Sands SA completes the tenement set of the Mutamba project in Jangamo-Inharrime and represents a significant achievement for Savannah in its joint venture with Rio Tinto PLC.
"To finalise the process, the normal administrative payments and processes need to be completed; these are currently underway for all three licences."
Savannah currently has a 20% interest in the project, though this could be boosted to 51% should it complete and deliver a feasibility study.
Savannah shares were 3.4% higher at 2.30 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Rio Tinto (RIO)
Savannah Resources (SAV)
