Savannah Resources PLC Heads of Agreement between Savannah and Galp (3151L)
12 January 2021 - 6:00PM
UK Regulatory
TIDMSAV TIDM96JX
RNS Number : 3151L
Savannah Resources PLC
12 January 2021
12 January 2021
Savannah Resources Plc
('Savannah' or the 'Company')
Heads of Agreement between Savannah and Galp re. strategic
investment & offtake agreement
Savannah is pleased to announce that it has signed a Heads of
Agreement ('HoA') with the major diversified Portuguese energy
group, Galp Energia, SGPS, S.A ('Galp', Euronext: Galp), regarding
a proposed strategic investment and alliance in the lithium field
around the Mina do Barroso Lithium Project in northern Portugal
("Mina do Barroso" or the "Project"). Galp's strategic presence and
experience in Portugal and Europe's energy sector will be of
significant benefit in driving the Project to production.
Key terms:
-- Galp intends to secure a 10% shareholding in Savannah's
Portuguese subsidiaries which own Mina do Barroso for US$6.4m cash
to be used to further Savannah's progress towards its Definitive
Feasibility Study ("DFS"), subject to due diligence and completion
of definitive agreements relating to the partnership
-- Galp will add material value through its participation at the
Project's board level and the transfer of its significant
experience in developing large scale resource projects in
Portugal
-- Galp and Savannah are set to evaluate, under exclusive terms,
an offtake agreement for up to 100,000tpa of lithium concentrate
from Mina do Barroso equating to approximately 50% of annual
production. The agreement represents a significant step in
commercialising Mina do Barroso and will be an important factor in
securing financing for the construction of the Project
David Archer, Savannah's Chief Executive Officer said: "We are
delighted to announce Galp as a potential investor and future
strategic partner in our Portuguese project. We believe Mina do
Barroso's low carbon footprint lithium concentrate will provide a
key foundation for Europe's energy transition to electric mobility
and we are delighted to be joined by Galp on this journey. They are
one of the leading European companies in the energy and renewables
space with a commitment to the energy transition and have a wealth
of experience in developing large scale projects such as this.
Their knowledge and experience will be invaluable to Savannah as we
further progress the Project forward in a responsible and
sustainable way into development.
"The prospect of having Galp as a partner in Portugal is even
more enticing given their outstanding ESG credentials, having been
named by the Climate Disclosure Project as one of the energy
companies that most effectively enacts climate change-related best
practices. This record is a result of Galp aligning its portfolio
with low-emission business models, products and services and we are
pleased that they have recognised Savannah as a partner with
similar objectives.
"Mina do Barroso will provide a series of compelling economic,
social, demographic and environmental benefits to the Project's
region, to Portugal and to Europe. In particular the Project will
provide a catalyst for the development in Portugal of potential new
industries in the midstream and upstream part of Europe's
lithium-ion battery ecosystem.
"In the meantime, we will continue to press forward with the
Definitive Feasibility Study of the expanded scope of the Mina do
Barroso mine and provide information to a further request from
Agência Portuguesa do Ambiente ('APA'), the Portuguese
environmental regulator".
About Galp
Listed on Euronext with a market capitalisation of EUR7.5bn,
Galp is a Portuguese company which has grown into a diversified
energy company operating in 11 countries and employing over 6,000
staff. It is one of Portugal's largest companies and the largest
producer of solar energy in Iberia. In November 2020 it was ranked
3(rd) in the world on the Dow Jones Sustainability indices.
Regulatory Information
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
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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)
Camarco (Financial PR) Tel: +44 20 3757 4980
Nick Hennis / Gordon Poole
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".
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END
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