Business
Strategic Partnership with AMG Critical Materials
Strategic Partnership with AMG Critical Materials.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n\n \n20 June 2024\n \nSavannah Resources Plc\n(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')\n \nComprehensive Strategic Partnership with AMG Fulfills Near Term Funding Requirements and Offers Potential Full Project Financing Solution for the Barroso Lithium Project\n \nSavannah Resources Plc, the developer of the Barroso Lithium Project (the 'Project') in Portugal, Europe's largest spodumene lithium deposit, has entered a strategic partnership with the AMG Critical Materials N.V. Group ('AMG'), the Amsterdam-listed, global critical materials business. AMG's wholly owned German subsidiary, AMG Lithium B.V., an established spodumene concentrate producer and, in the second half of 2024, the first major European lithium chemical producer, has invested GBP16m in Savannah through a subscription for 342,612,420 new ordinary shares of 1 pence each in the Company (\"Ordinary Shares\") at a price of 4.67p (representing a 35% premium to the 30-day VWAP) to become the Company's largest shareholder.\n \nThis investment will allow Savannah to reach a Final Investment Decision ('FID') point on the Project. The partnership also includes an offtake heads of terms agreement (the 'Offtake HoT') through which, once final agreements are negotiated and signed, AMG can purchase 45ktpa of spodumene concentrate from the Project (approximately 25% of total) for 5 years based on prevailing market prices at the time. In addition, AMG will take a lead role in the partnership in securing a 'full project financing solution' for the Project's development. If such financing is successful, the Offtake HoT anticipates the increase and extension of the offtake arrangements to 90ktpa for 10 years.\n \nH...