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Savannah raises $30M for Portugal Barroso lithium project
The capital includes an £0.055 share placement plus $11.2 million in subscriptions, funding early works like long-lead fabrication notices and groundworks.
Savannah Resources has raised $30 million to advance its Barroso lithium project in Portugal, using the proceeds to move the project through engineering, permitting and early development work, Mining.com reported.
The company said it issued 408 million shares at £0.055 each, and will also enter subscription agreements with institutional and individual investors, including four of its largest shareholders, to raise $11.2 million. Savannah plans to fund early works such as vendor data, fabrication notices for long-lead items and groundworks ahead of access road construction, alongside conditional awards for engineering, procurement and management and bulk earthworks contracts.
Barroso is being advanced after completion of a phase-one definitive feasibility study in July, which outlined a 14-year operation producing an average 183,000 tonnes of spodumene concentrate grading 5.5% lithium oxide annually. The DFS estimated earnings before interest, taxes, depreciation and amortization of $3.2 billion and free cash flow of $1.9 billion over the initial mine life, alongside a post-tax net present value of $913 million.
Savannah also plans to use the new funding for project financing, environmental submissions, industrial permit applications and bypass road designs, as well as geotechnical and resource work. The project is designated a Strategic Project under the European Union’s Critical Raw Materials Act, and Savannah describes it as Europe’s largest spodumene lithium deposit, though local community and environmental group opposition has raised concerns about land use, water and biodiversity.