Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
28 July 2014
Savannah Resources Plc
Notice to Convert Unsecured Loan Note
Savannah Resources Plc (AIM: SAV) advises that its Unsecured Loan Note ("Convertible Loan") in Alecto Minerals Plc ("Alecto") has been converted into 30,434,783 ordinary shares in Alecto ("Shares").
As prescribed by the terms of the Convertible Loan entered into in October 2013 in relation to the disposal of AME West Africa Ltd to Alecto, the £350,000 Convertible Loan has been converted at a fixed rate of £0.0115 per ordinary Share. Additionally 1,610,959 Shares have been issued in satisfaction of the £18,500 interest earned on the Convertible Loan.
Following the issue of the resulting 32,045,742 Shares, the Company's shareholding in Alecto will be 173,784,875 Shares acquired as follows:
Transaction |
Quantity |
% of Alecto Issued Share Capital |
Divestment of AME West Africa Ltd / Kossanto Gold Project (£1,250,000) October 2013 |
108,695,652 |
13.2% |
Unsecured Loan Notes subscribed for in cash (£350,000) plus interest October 2013 / Converted July 2014 |
32,045,742 |
3.9% |
Divestment of NewMines Holdings Ltd / Karan / Diatissan Gold Projects (£250,000) March 2014 |
20,000,000 |
2.4% |
Shares subscribed for in cash (£150,000) October 2013 |
13,043,481 |
1.6% |
Total |
173,784,875 |
21.1% |
The new Shares issued are subject to an orderly market agreement until 4 October 2014. As previously announced the Shares issued in relation to the divestment of AME West Africa and New Mines Holdings Ltd are subject to a lock-in until 4 October 2014, followed by an orderly market agreement for a further 12 months.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer |
Savannah Resources plc |
Tel: +44 20 7389 5019 |
James Biddle (Nominated Adviser) Charlie Cryer (Corporate Broking) |
RFC Ambrian Ltd |
Tel: +44 20 3440 6800 |
Felicity Edwards/ Charlotte Heap |
St Brides Media & Finance Ltd |
Tel: +44 20 7236 1177 |
Notes
About Savannah
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company. It has an 80% shareholding in Matilda Minerals Limitada which operates the Jangamo exploration project in a world class mineral sands province in Mozambique which borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12Bn tonnes at 3-4.5% THM1 (published in 2008).
Savannah interests in two copper projects in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, will provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits.
In addition, Savannah owns a 21.1% strategic shareholding in Alecto Minerals Plc which provides Savannah with exposure to both the highly prospective Kossanto Gold Project in the prolific Kenieba inlier in Mali and also to the Wayu Boda and Aysid Meketel gold / base metal projects in Ethiopia for which Alecto has a joint venture with Centamin Plc. Under this joint venture, Centamin Plc is committing up to US$14m in exploration funding to earn up to 70% of each project.
