Savannah Resources: placing of £0.55 million to support development of Mutamba/ Jangamo JV Project

PUBLISHED: 30 Jun 2015 @ 04:28 | Comments (0) |

Cash Placing of £0.55 Million

Savannah Resources (LSE:SAV), advises that it has raised approximately £0.55 million cash (before expenses) through the placing of 21,900,000 new ordinary shares at a placing price of 2.5p per ordinary share with both new and existing investors.

RFC Ambrian Limited acted as broker to the Placing.

Savannah’s Chief Executive Officer, David Archer, said, “The announcement of the joint venture with Rio Tinto over the Mutamba/ Jangamo Project on Monday, 22 June marks a major step change for Savannah. Today’s placement will be directed at funding activities that are designed to result in the achievement of a series of major milestones in 2015. For example, in the case of the newly announced Mutamba/Jangamo Project the definition of a JORC Mineral Resource and, later in the year, the completion of a scoping study that will define the high level parameters around a potential mine development.

“With these funds, which are being raised at a premium of 25% to the 20 day VWAP prior to the Rio Tinto joint venture announcement, Savannah is well placed to deliver on these objectives.”

Details of Placing

Application will be made for the Placing shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM. It is expected that Admission will become effective and dealings will commence at 8.00 a.m. on 2 July 2015.

Following Admission the total issued share capital will consist of 249,401,573 ordinary shares. As such the total number of voting rights in the Company will be 249,401,573 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 work on the recently announced joint venture with Rio Tinto comprising the Mutamba/Jangamo heavy minerals sands project in Mozambique, including the definition of a JORC compliant resource and completion of the scoping study, as well as for general working capital purposes to support the Company.

The Company will have a pro-forma cash and tradeable securities position of £1.24 million following the issue and Admission of the Placing Shares for gross cash proceeds of £547,500.

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