Business
Cash Placing and Subscriptions for £11.5m
Cash Placing and Subscriptions for £11.5m.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7613T Savannah Resources PLC 05 July 2018 \n\n \nTHIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION, OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR JAPAN\n \nSavannah Resources Plc\n \nCash Placing and Subscriptions for £11.5 million\nLetter of Intent for a further £1 million Cash Subscription from Al Marjan\n \nSavannah Resources plc (AIM: SAV and SWB:SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has raised approximately £11.5 million cash (before expenses) through the oversubscribed placing ('Placing') of 92,535,277 new ordinary shares of 1p each ('Ordinary Shares') and commitments to subscribe ('Subscription') for 35,811,979 Ordinary Shares (the 'Placing Shares' and 'Subscription Shares') at a placing price of 9p per Ordinary Share (the 'Placing Price') with both new and existing investors.\n \nThe Company has also received a letter of intent from its major shareholder Al Marjan Limited ('Al Marjan') for a further £1 million pursuant to the Relationship Agreement, giving gross proceeds of £12.5 million (together with the Placing and Subscription, the 'Fundraise'). finnCap and Whitman Howard acted as Joint Bookrunners in respect of the Placing. The Placing Shares and the Subscription Shares are being issued and allotted pursuant to authorities granted at the Company's last Annual General Meeting. In aggregate, the Placing Shares and Subscription Shares represent 15.5% of the Company's enlarged share capital.\n \nHighlights\n \n· Raised gross proceeds of £11.5 million cash at 9 pence per share.\n· Funds will predominantly be used to support the next stage of development for Savannah's Mina do Barroso Lithium Project located in northern Portugal, providing funding to decision to mine.\n· There was strong institutional demand with several material tier 1 institutional investors participating in the Placing.\n· Following the positive results of the Scoping Study, as announced on 14 June 2018, the Company plans to commission a Feasibility Study over Mina Do Barroso with a ...