(Alliance News) - Savannah Resources PLC on Monday said it is being sued by Covas do Barroso Baldios regarding 1.4% of the ownership of land of its Barroso lithium project in northern Portugal.
Savannah Resources shares fell 10% to 2.80 pence each in London on early Monday.
The London-based mineral resource development company explained: "The Baldios management commission has lodged a civil claim against certain landowners, claiming that they have registered some of their properties in excess, that is, occupying property that is actually Baldios land (community owned and managed land)." It added that it is one of the sued landowners.
The affected project area is about eight hectares big, the company said.
Savannah has been asked to submit a legal defence before the end of September 2022 and will work with the Portuguese council.
"To the best of Savannah's knowledge...Savannah has purchased exactly what is registered with the land registry office," the firm stated.
By Tom Budszus; tombudszus@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Savannah Resources (SAV)