Savannah Resources announced on Thursday its plans to conduct a fundraise of over £5.8 million to support the acceleration of the feasibility study at its Barroso lithium project. Located in northern Portugal, this wholly-owned venture shows promising potential in the mining industry.
Share Placing, Subscription, and Retail Offer
The mining company aims to raise approximately £2.3 million through a share placing, which involves the issuance of around 50.7 million new shares at a price of 4.67 pence per share. With minimal discount (0.6%) compared to Wednesday’s closing price, this approach seeks to attract investors.
In addition, Savannah Resources plans to propose a subscription to raise roughly £3.5 million by issuing approximately 75.2 million new shares at the same price. This will be complemented by a retail offer, further contributing to the funds raised.
Accelerating the Feasibility Study
The majority of the funds acquired from this fundraising effort will be allocated towards expediting crucial workstreams necessary for completing the definitive feasibility study of the Barroso lithium project. By doing so, Savannah Resources aims to gain valuable insights and make significant progress in assessing the project’s viability.
Furthermore, a portion of the proceeds will go towards expanding the company’s team in Portugal. This expansion will enhance the expertise and capabilities required for the successful development of the Barroso lithium project.
