Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
7 October 2015
Savannah Resources Plc
Cash Placing
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), advises that it has raised £225,500 cash (before expenses) through the placing ('Placing') of 13,264,706 new ordinary shares of 1.0p each ('Ordinary Shares') at a placing price of 1.7p per ordinary share ('Placing Shares') to three of its existing shareholders.
Savannah's Chief Executive Officer, David Archer, said, "We are delighted with the continued commitment shown by these shareholders. The funds will be used to support a 1,500m diamond and reverse circulation drilling programme on a series of high priority, VMS and gold targets on Blocks 4 and 5 in Oman. We are drilling target types which, by their nature, generally exhibit higher grades which is the key characteristic for successful mine developments.
"The drilling is designed to allow us both to define a maiden JORC Mineral Resource on Block 4 and to increase our high grade copper Mineral Resource on Block 5.
"Drilling is expected to commence next week."
Details of Placing
The Placing will be in two tranches as follows: Tranche 1 - an amount of £125,500 for 7,382,353 Ordinary Shares at a price of 1.7p per share; Tranche 2 - an amount of £100,000 for 5,882,353 Ordinary Shares at a price of 1.7p per share.
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 ('Admission'). It is expected that Admission will become effective and dealings will commence as follows: Tranche 1 at 8.00 a.m. on 13 October 2015; and Tranche 2 at 8.00 a.m. on 4 November 2015.
As a result of the Placing, the percentage holding of a significant shareholder will increase and the revised holdings are expected to be as follows:
Shareholder |
Holding prior to the Placing |
Percentage of Ordinary Shares prior to the Placing |
Number of Placing Shares subscribed for |
Holding following Placing |
Percentage of Ordinary Shares following Placing |
Rémy Welschinger |
11,425,597 |
4.60% |
5,882,353 |
17,307,950 |
6.61% |
Following Admission the total issued share capital will consist of 261,777,390 Ordinary Shares. As such the total number of voting rights in the Company will be 261,777,390 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 Company to support drilling programmes in Oman as well as for general working capital purposes.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer |
Savannah Resources plc |
Tel: +44 20 7389 5019 |
David Hignell / Gerry Beaney (Nominated Adviser) |
Northland Capital Partners Ltd |
Tel: +44 20 7382 1100 |
Jon Belliss / Elliot Hance (Corporate Broker) |
Beaufort Securities Ltd |
Tel: +44 20 7382 8300 |
Felicity Winkles/ Charlotte Heap |
St Brides Partners Ltd |
Tel: +44 20 7236 1177 |
**ENDS**
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.
Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo Project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).
Savannah has interests in three copper blocks 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, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold 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.
