Last checked at 19 Oct 2015 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
19 October 2015
Savannah Resources Plc
Cash Placing & Director Subscription
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), advises that it has raised £339,060 cash (before expenses) through the placing ('Placing') of 16,953,000 new ordinary shares of 1.0p each ('Ordinary Shares') at a placing price of 2.0p per ordinary share ('Placing Shares') to Al Marjan Limited, a new investor.
Savannah's Chief Executive Officer, David Archer, said, "We are delighted to see very solid support for Savannah's investment case with the placing to a new significant shareholder, Al Marjan Limited. This placing, together with the issue announced on 7 October to three of our existing shareholders, results in aggregate cash raised of £564,060 before expenses. This puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman and progressing our mineral sands initiative in Mozambique.''
Details of the Placing
In addition, the Company's Chairman, Mr Matthew King has elected to take part of his remuneration by way of the issuance of 833,333 Ordinary Shares (of which 205,495 will be sold to cover the related tax liabilities, leaving a balance of 627,838 shares) at a price of 2.0p per share (the 'Director Subscription').
The Placing will be executed in two tranches. The Company will shortly issue 8,946,405 Ordinary Shares at a price of 2.0p to cover the first tranche of the Placing and the Director Subscription and will convene a general meeting of the Company at which shareholders will be asked to give the directors the necessary authorities to issue the remaining 8,839,928 Ordinary Shares. Details of the general meeting will be announced separately and a notice of general meeting will shortly be sent to shareholders.
Application will be made for the 8,946,405 Ordinary Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence on or around 22 October 2015. Application for the remaining 8,839,928 Ordinary Shares will be made following the forthcoming general meeting.
Following Admission of the 8,946,405 Ordinary Shares, the Company's total issued share capital will consist of 265,730,331 Ordinary Shares. As such the total number of voting rights in the Company will be 265,730,331 Ordinary Shares. This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
Upon completion of the Placing and the Admission of the 16,953,000 Ordinary Shares following the general meeting, the percentage holding of a significant shareholder and director will increase and the revised holdings are expected to be as follows:
Shareholder | Holding prior to the Placing | Percentage of Ordinary Shares prior to the Placing | Number of Placing Shares subscribed for | Holding following Placing | Percentage of Ordinary Shares following Placing |
Al Marjan Limited
| 0 | 0% | 16,953,000 | 16,953,000 | 6.04% |
Matthew King | 0 | 0% | 627,838 | 627,838 | 0.24% |
The net proceeds of the Placing will be used by the Company for general working capital purposes.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer | Savannah Resources plc | Tel: +44 20 7389 5019 |
David Hignell / Gerry Beaney (Nominated Adviser) | Northland Capital Partners Ltd | Tel: +44 20 7382 1100 |
Jon Belliss / Elliot Hance (Corporate Broker) | Beaufort Securities Ltd | Tel: +44 20 7382 8300 |
Felicity Winkles/ Charlotte Heap | St Brides Partners Ltd | Tel: +44 20 7236 1177 |
**ENDS**
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.
Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo Project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).
Savannah has interests in three copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits.