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Oh, Savannah.
Savannah Resources (LSE:SAV), an AIM listed exploration company, has announced that it has raised £496,313 (before expenses) through the placing of 18,047,748 new ordinary shares at a placing price of 2.75p per ordinary share.
N+1 Singer acted as broker to the Placing, which was oversubscribed and featured both new and existing investors.
Overview:
· Placing combined with an additional £500,000 equity investment in July 2013 takes total funds raised for 2013 to approximately £1,000,000, underpinning Savannah’s value potential
· Funds raised will be used to support the development of the Company’s flagship 180km2 Jangamo Mineral Sands Project in Southern Mozambique (‘Jangamo’ or ‘the Project’) and for working capital
· Jangamo is located in a world class mineral sands province and is highly prospective for total heavy minerals including ilmenite, rutile and zircon
Savannah’s CEO, David Archer, said, “This Placing is an endorsement of the significant change in strategy and structure the Company has undertaken over the past few months, as we look to establish ourselves as a multi-commodity exploration and development company. Through the Placing we are delighted to introduce new shareholders to our share register, including a significant new institutional investor, which I believe is testament to the Company’s strong value potential.”
“Our strengthened cash position, which includes an additional equity investment of up to £500,000 in July 2013, provides us with a strong platform from which to commence exploration at our flagship Jangamo project in Southern Mozambique, which is highly prospective for heavy mineral sands. Furthermore, having recently reduced our overheads by approximately 50%, and securitised our investment in the highly prospective Kossanto Gold Project in Mali through our strategic shareholding in Alecto Minerals Plc, which in turn offers exposure to both the Kossanto Gold Project and two highly prospective gold exploration projects in Ethiopia in which Centamin Plc is investing up to US$14m, I believe we are well placed for growth. I look forward to updating shareholders on our future exploration plans at Jangamo in due course.”
Details of Placing and Adviser Service Agreements:
In addition to the placing, Savannah will be issuing shares to the Company’s advisers in lieu of fees at a price of 2.75p per share (‘Adviser Issue’). The combined Placing and Adviser Issue of 18,620,477 shares represents the maximum possible under the relevant authorities conveyed upon the Company at the General Meeting held on 24 September.
Application will be made for the new ordinary shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM (“Admission”). Admission is expected to occur at 8.00 a.m. on or around 7 November 2013. Following Admission, the total number of voting rights in the Company will be 138,365,781 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.
The net proceeds of the placing will be used by the Group to fund an initial drilling campaign at Jangamo, to reimburse agreed costs of the sellers of the 80% shareholding in Matilda and to provide working capital.
