Last checked at 15 Feb 2016 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
15 February 2016
Savannah Resources Plc
Cash Placing of £1.75 million
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company'), announces that it has raised £1,747,473 (before expenses) through the placing ('Placing') of 98,295,329 ordinary shares of 1.0p each ('Ordinary Shares') at a placing price of 1.777778p per ordinary share ('Placing Shares') to Al Marjan Limited, an existing investor (the 'Investor').
HIGHLIGHTS:
· Raised gross proceeds of £1,747,473
· Funds will predominantly be used to fund the development of the Company's copper projects in Oman, with production targeted to commence in late 2017, and to provide working capital
· The Placing price of 1.777778p is an 11% premium to the 50 day VWAP, underlining the strategic nature of the investment
· The Investor, a privately owned investment trust, will become the Company's largest shareholder at 29.99%
· A relationship agreement has been agreed with the Investor and it is envisaged that the Investor will appoint two nominees and an alternate for each nominee to the Savannah Board in due course
· The investment gives the Company a cash balance of ~£2 million
David Archer, Savannah's Chief Executive Officer said today "We are delighted to see very solid support for Savannah's investment case with this significant follow on investment by Al Marjan Limited, who joined the share register in late 2015 and is strongly supportive of the Company's growth strategy. This Placing puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman in late 2017 and progressing our mineral sands initiative in Mozambique. Furthermore, it enhances Savannah's already favourable profile within the Oman mining industry."
Details of the Placing
The Placing will be executed in two tranches. The Company will shortly issue 70,864,561 Ordinary Shares at a price of 1.777778p to cover the first tranche ('Tranche 1 Shares') of the Placing and, at the Company's forthcoming AGM, will seek shareholder approval to give the Directors the necessary authorities to issue the remaining 27,430,768 Ordinary Shares ('Tranche 2 Shares'). Details of the Annual General Meeting will be announced separately in due course.
Application has been made for the 70,864,561 Tranche 1 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 18 February 2016. Application for the remaining 27,430,768, Tranche 2 Shares will be made as soon as practicable following the forthcoming Annual General Meeting.
Following Admission of the 70,864,561 Tranche 1 Shares, the Company's total issued share capital will consist of 356,730,331 Ordinary Shares. As such the total number of voting rights in the Company will be 356,730,331 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 98,295,329 Ordinary Shares following the Annual General Meeting, the percentage holding of the Investor will increase and its revised holdings are expected to be as follows:
Transaction Description | Quantity of Shares (Transaction) | Cumulative Shares held (or to be held) by Investor (Quantity) | Cumulative Shares held (or to be held) by Investor(%) | Cumulative Total Shares in (or to be in Issue) in the Company (Quantity ) |
Current Shareholding | 16,953,000 | 16,953,000 | 5.93% | 285,865,770 |
Tranche 1 | 70,864,561 | 87,817,561 | 24.62% | 356,730,331 |
Tranche 2 | 27,430,768 | 115,248,329 | 29.9999998% | 384,161,099 |
The Investor is a privately owned investment trust registered in the Cayman Islands.
**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 |
Charlotte Heap/ Lottie Brocklehurst | St Brides Partners Ltd | Tel: +44 20 7236 1177 |
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. Formation of the joint venture remains subject to approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Jangamo has a 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade. 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, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.