Business
Completion of Divestment - Copper Projects in Oman
Completion of Divestment - Copper Projects in Oman.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8485D\n Savannah Resources PLC\n 02 November 2020\n \n \n \n \n \n \n \n \n 2 November 2020 \n \n \n \n \n \n Savannah Resources Plc \n \n \n ('Savannah' or the 'Company')\n \n \n \n \n \n Completion of Divestment of Copper Projects in Oman\n \n \n \n \n \n Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), the resource development company, confirms that it has now completed the sale announced on 1 September 2020 of its stakes in the Block 4 and Block 5 copper projects in Oman (the \"Projects\") to Force Commodities Ltd (\"Force\"), an ASX listed mine development company.\n \n \n Transaction Highlights\n \n \n · \n Consideration and other payments:\n \n \n o \n Savannah will receive 50m new fully paid ordinary shares issued by Force (deemed issue price of 1 Australian cent per Force share) giving Savannah a 4.9% stake in Force after 4m shares are used to settle some Transaction costs\n \n \n o \n Savannah will receive preferential payment of AUD$3.5m in cash from an existing loan (announced 10 April 2014) out of cash flow generated from production on Block 5\n \n \n o \n Savannah shall receive payment of a 1.0% net smelter royalty on any future metal sales (from Block 4 and/or Block 5) (the 1% applies to Force's\n \n \n proportional ownership of each project)\n \n \n · \n Legal entity structure divestment\n \n \n o \n Savannah has transferred 100% ownership of Savannah Resources B.V., which holds Savannah's interests in the Projects, to Force\n \n \n · \n The structure of the Transaction enables Savannah to maintain an interest in the Projects' long-term economic success, and allows the Company to wholly focus its resources on development of the Mina do Barroso Lithium Project in Portugal and the Mutamba Mineral Sands Project in Mozambique\n \n \n \n \n \n \n David Archer, Savannah's CEO commented: \n \n \"We have now concluded the sale of our Projects in Oman to Force, which we first announced in September. \n \n \n \n \n \n \"The strategic review we initiated last year looked at a number of options regarding Savannah's ongoing participation in the Projects. It concluded that an appropriately structured divestment, which allowed Savannah to retain an interest in the Projects' long term economic success, represente...