Savannah Resources to raise over £4 million for lithium project

Published 26/06/2025, 16:56
Savannah Resources to raise over £4 million for lithium project

LONDON - European lithium development company Savannah Resources (LON:SAVS) (AIM:SAV) announced Thursday it plans to raise more than £4 million (~$5.5 million) through a fundraising initiative to support the ongoing development of its Barroso Lithium Project in Portugal.

The fundraise will be conducted through a combination of direct subscriptions from major shareholders, a placing to institutional investors, and a retail offer, all priced at 3.5 pence per share, representing a 5.4% discount to Wednesday’s closing price.

Four of Savannah’s largest shareholders, including AMG Lithium B.V., Al Marjan Ltd, Grupo Lusiaves SGPS, S.A. and Mário Nuno dos Santos Ferreira, have committed approximately £1.82 million to the subscription. Board members and management will contribute an additional £130,000.

The Barroso Lithium Project, recently classified as a Strategic Project by the European Commission under the Critical Raw Materials Act, is Europe’s largest spodumene lithium deposit. Once operational, the project is expected to produce enough lithium for approximately half a million vehicle battery packs annually.

Proceeds from the fundraise will be allocated toward completing the Definitive Feasibility Study, environmental licensing work, securing land use rights, enhancing the project team, and covering initial project finance advisory fees.

The company had approximately $14.9 million in cash as of April 30, 2025.

SP Angel Corporate Finance LLP is acting as global coordinator and joint bookrunner alongside Canaccord Genuity Limited, Caixa-Banco de Investimento, S.A. and Alantra Equities, SV, S.A.

The announcement was made based on a press release statement from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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