Savannah Resources plc launched a retail offer for new ordinary shares at 5.5 pence each. This price represents a 5.5% discount to the closing price on September 18. The move is part of a broader fundraising effort that includes an institutional placing. Trading on the AIM market was halted on September 21 pending the announcement of this equity capital raise.
Net proceeds will advance the Barroso Lithium Project in Portugal toward a Final Investment Decision. The company will use the capital for permitting, drilling, securing land use rights, and community initiatives. The Barroso project is currently considered the largest spodumene lithium deposit in Europe. Funds will also provide general working capital as the site moves toward construction.
The retail offer remains conditional on the completion of the institutional placing. It also requires the admission of new shares to trading on the AIM market. Savannah Resources expects this admission to occur by the end of September.