Business
Heads of Agreement with MRG Metals Limited
Heads of Agreement with MRG Metals Limited.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \n \n 9 November 2022\n \n Savannah Resources Plc\n \n \n \n (AIM: SAV, FWB: SAV and SWB: SAV)\n \n ('Savannah', or the 'Company')\n \n \n \n \n \n Heads of Agreement for potential divestment of last remaining Mozambique Mining Concession\n \n \n \n \n Savannah Resources, the European lithium development company, is pleased to announce that its subsidiary AME EAST AFRICA LIMITED ('AME') has signed a Binding Heads of Agreement ('HoA') with MRG Metals Limited (ASX: MRQ, 'MRG') in relation to an option agreement under which MRG could acquire Mining Concession 9735C ('ML 9735C', the 'Licence') in Mozambique, owned by the Company's subsidiary Matilda Minerals Lda ('Matilda') (the \"Proposed Transaction\").\n \n \n Key aspects of the Proposed Transaction include:\n \n \n ·\n MRG is given an exclusive 45-day due diligence period commencing on 8 November 2022 ('Due Diligence' and 'Due Diligence Period' respectively) to validate all relevant costs, technical aspects of the Licence and any legal, regulatory, tax or commercial matters.\n \n \n ·\n On completion of the Due Diligence Period, if MRG chooses to proceed with the Proposed Transaction, the parties will execute an Option Agreement providing MRG a 16-month option period (the 'Option' and 'Option Period' respectively), which can be extended by mutual consent.\n \n \n ·\n During the Due Diligence Period, AME will take all reasonable steps to prepare a draft Option Agreement with which to negotiate with MRG in anticipation of it being entered into by the parties within 5 working days following the expiry of the Due Diligence Period, or earlier by agreement between both parties.\n \n \n ·\n During the Option Period, MRG will fund the estimated US$0.5m to complete a Work Programme by mid-October 2023. The Work Programme is focussed on commitments necessary to satisfy Instituto Nacional de Minas ('INAMI') but may include infill/extension drilling to improve resource quality and quantity.\n \n \n ·\n During the Option Period, MRG may exercise the Option to acquire ML 9735C based on the following terms:\n \n \n o \n US$0.8m, payable at the sole discretion of MRG in cash, or in new ordinary shares in MRG based on the 20-day volume weighted average price at time of exercise of the Option, or a combination of cash and new ordinary shares in MRG (the 'Acquisitio...