TIDMSAV
RNS Number : 8485D
Savannah Resources PLC
02 November 2020
2 November 2020
Savannah Resources Plc
('Savannah' or the 'Company')
Completion of Divestment of Copper Projects in Oman
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), the
resource development company, confirms that it has now completed
the sale announced on 1 September 2020 of its stakes in the Block 4
and Block 5 copper projects in Oman (the "Projects") to Force
Commodities Ltd ("Force"), an ASX listed mine development
company.
Transaction Highlights
-- Consideration and other payments:
o Savannah will receive 50m new fully paid ordinary shares
issued by Force (deemed issue price of 1 Australian cent per Force
share) giving Savannah a 4.9% stake in Force after 4m shares are
used to settle some Transaction costs
o Savannah will receive preferential payment of AUD$3.5m in cash
from an existing loan (announced 10 April 2014) out of cash flow
generated from production on Block 5
o Savannah shall receive payment of a 1.0% net smelter royalty
on any future metal sales (from Block 4 and/or Block 5) (the 1%
applies to Force's
proportional ownership of each project)
-- Legal entity structure divestment
o Savannah has transferred 100% ownership of Savannah Resources
B.V., which holds Savannah's interests in the Projects, to
Force
-- The structure of the Transaction enables Savannah to maintain
an interest in the Projects' long-term economic success, and allows
the Company to wholly focus its resources on development of the
Mina do Barroso Lithium Project in Portugal and the Mutamba Mineral
Sands Project in Mozambique
David Archer, Savannah's CEO commented: "We have now concluded
the sale of our Projects in Oman to Force, which we first announced
in September.
"The strategic review we initiated last year looked at a number
of options regarding Savannah's ongoing participation in the
Projects. It concluded that an appropriately structured divestment,
which allowed Savannah to retain an interest in the Projects' long
term economic success, represented the best outcome available to
us. The Transaction gives Savannah a meaningful shareholding in
Force as well as the potential for cash payments from any future
production from the Projects.
"Force ' s experienced management team has shown great
enthusiasm for the Projects since we first engaged with them on the
Transaction. For example, in the weeks since the Transaction was
announced, Force's in-country team have been conducting fieldwork
on both blocks, and a new Scoping Study on Block 5 is also
planned.
"My thanks go to all those involved for their considerable
efforts in finalising this Transaction. I would also like to
reiterate my gratitude to our staff in Oman who have continued to
work diligently and professionally during this period of
transition.
"With responsibility for Oman now lying with Force, Savannah is
free to concentrate more of its management time, resources and
capital on its priority projects in Portugal and Mozambique. We
look forward to doing this and providing news in the near term of
our progress."
Details of the Transaction
The Transaction constitutes a substantial transaction under AIM
Rule 12. The key terms can be found in the Company press release
dated 1 September 2020.
(
http://www.savannahresources.com/cms/wp-content/uploads/2020/09/Divestment-of-Copper-Projects-in-Oman.pdf
)
About Force
Force is a base metals exploration and development focused
company headquartered in Perth, Western Australia and are listed on
the Australian Stock Exchange (ASX:4CE) but are currently in
voluntary suspension pending relisting. Force went into voluntary
suspension in January 2020 to restructure and refinance the company
and to change the senior management of the company following the
failure of several of their business opportunities and the
inability to raise further capital. Over the past 6 months Force
has been undergoing a structured process to relist the company
including changing senior management and identifying new sources of
capital. Force has steadily gained momentum during the restructure
through the identification of a high-quality project for
acquisition and appointments of high calibre senior professionals
to its Board and Executive. The culmination of the relisting
process is the injection of new funds (a process overseen by
boutique corporate advisory firm 62 Capital) based on the
acquisition of the Projects.
Regulatory Information
In its 2020 Interims the Company reported a loss of GBP5.5m for
the year, including GBP5.4m related to the impairment of intangible
exploration assets, in respect of the Projects being divested under
the Transaction.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Capitalised terms used but not otherwise defined in this
announcement bear the meanings ascribed to them in the Company's
announcement of 1 September 2020.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
David Archer, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor)
David Hignell / Charlie Bouverat
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1698
James Joyce/ Matt Chan (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate
Broking)
St Brides Partners Ltd (Financial PR) Tel: +44 20 7236 1177
Charlotte Page / Cosima Akerman
About Savannah
Savannah is a diversified resources group (AIM: SAV) with two
development stage projects, a hardrock lithium project in Portugal
which has the largest spodumene lithium resource in Europe, and the
world-class Mutamba Heavy Mineral Sands Project in Mozambique,
which is being developed in a consortium with the global major Rio
Tinto. The Board is committed to serving the interests of its
shareholders and to delivering outcomes that will improve the lives
of the communities we work with and our staff.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUPGGWGUPUGMG
(END) Dow Jones Newswires
November 02, 2020 02:00 ET (07:00 GMT)
Savannah Resources (LSE:SAV)
Historical Stock Chart
From Apr 2024 to May 2024
Savannah Resources (LSE:SAV)
Historical Stock Chart
From May 2023 to May 2024