Business
Agreement to cancel Unincorporated Joint Venture
Agreement to cancel Unincorporated Joint Venture.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2362U\n Savannah Resources PLC\n 01 December 2021\n \n \n \n \n \n \n \n 1 December 2021\n \n \n \n \n \n Savannah Resources Plc\n \n \n (AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the 'Company')\n \n \n \n \n \n Mutamba Project\n \n \n Savannah and Rio Tinto agree to amicably cancel Unincorporated Joint Venture\n \n \n Savannah received US$9.5m cash\n \n \n \n \n \n Savannah Resources plc, the European lithium development company, is pleased to announce that, following the completion of the strategic review on its mineral sands operations in Mozambique (the \"Project\"), it is to exit the Consortium Agreement with Rio Tinto (originally announced on 11 October 2016) with immediate effect. The Company will also exit its remaining assets in Mozambique.\n \n \n \n \n \n Rio Tinto has paid US$9.5m cash (the \"Cash Termination Compensation\") primarily to Savannah's wholly owned UK subsidiary in respect of the termination of the Consortium Agreement and the transfer of the in-country Savannah team to Rio Tinto (the \"Transaction\").\n \n \n \n \n \n Highlights:\n \n \n · \n Cash Termination Compensation of US$9.5m cash, equating to 0.42 pence per share in Savannah\n \n \n ·\n Rio Tinto will take full responsibility for the Mutamba project (Mining Concessions 9228C and 9229C, and Mining Concession application 9230C (\"Mutamba\")) with the intention to progress its development\n \n \n · \n Savannah and Rio Tinto intend to transfer Savannah's in-country team to Rio Tinto\n \n \n · \n Savannah will immediately commence the process of divesting its residual interests in Mozambique (primarily Matilda Minerals Lda and Mining Concession 9735C)\n \n \n · \n The Transaction eliminates the need for cash resources and ongoing management time to be devoted to what has become a non-core asset for Savannah following the increasing significance of its wholly owned Barroso Lithium Project in Portugal \n which is the most significant deposit of spodumene lithium in Europe, and is capable of producing enough lithium for ~0.5m electric vehicles per year\n \n \n ·\n The proceeds of the Transaction will be committed to the development of the flagship \n Barroso Lithium Project, for which Savannah's firm commitment is to plan and deliver a responsible operation, which incre...