Savannah Resources 1st Half Net Loss Narrows; Extends JV Deadline
30 September 2016 - 7:20PM
Dow Jones News
By Alex MacDonald
LONDON--Savannah Resources PLC (SAV.LN) reported a narrower
first-half net loss and said it has extended a deadline for closing
a heavy minerals sands joint venture with mining giant Rio Tinto
PLC (RIO) in Mozambique.
The multicommodity explorer, which is also developing a copper
project in Oman and exploring for lithium in Finland, reported a
net loss of 760,541 pounds ($987,715) for the six months ended June
30, 2016 compared with a net loss of GBP1.63 million in the same
period a year before when the company suffered a near GBP1 million
loss on disposal of assets.
The company also said it has agreed with Rio Tinto to extend the
deadline to close its joint venture to Oct 10 from Sep 30, marking
the second such extension since the deal was first announced in
June.
Savannah announced plans then to combine its Mutamba, Dongane
and Jangamo prospects with Rio Tinto's adjacent Chilubane heavy
mineral sands project. This would lead to the amalgamation of
Savannah's aggregated mineral resource base of 65 million metric
tons of ore with 4.2% heavy minerals sands grade and Rio Tinto's
yet-to-be-confirmed resource base of between 7 billion to 12
billion tons of ore with 3% to 4.5% heavy minerals grade.
Savannah will be the operator of the joint venture and may earn
up to a 51% interest in the combined Mutamba/Jangamo project.
Rio Tinto has agreed to purchase all of the joint venture's
heavy mineral sands under a long-term commercial contract from any
mine that may be developed in the project area.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
September 30, 2016 05:05 ET (09:05 GMT)
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