Savannah Resources PLC Cash Placing & Director Subscription (6054C)

TIDMSAV

RNS Number : 6054C

Savannah Resources PLC

19 October 2015

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

19 October 2015

Savannah Resources Plc

Cash Placing & Director Subscription

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), advises that it has raised GBP339,060 cash (before expenses) through the placing ('Placing') of 16,953,000 new ordinary shares of 1.0p each ('Ordinary Shares') at a placing price of 2.0p per ordinary share ('Placing Shares') to Al Marjan Limited, a new investor.

Savannah's Chief Executive Officer, David Archer, said, "We are delighted to see very solid support for Savannah's investment case with the placing to a new significant shareholder, Al Marjan Limited. This placing, together with the issue announced on 7 October to three of our existing shareholders, results in aggregate cash raised of GBP564,060 before expenses. This puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman and progressing our mineral sands initiative in Mozambique."

Details of the Placing

In addition, the Company's Chairman, Mr Matthew King has elected to take part of his remuneration by way of the issuance of 833,333 Ordinary Shares (of which 205,495 will be sold to cover the related tax liabilities, leaving a balance of 627,838 shares) at a price of 2.0p per share (the 'Director Subscription').

The Placing will be executed in two tranches. The Company will shortly issue 8,946,405 Ordinary Shares at a price of 2.0p to cover the first tranche of the Placing and the Director Subscription and will convene a general meeting of the Company at which shareholders will be asked to give the directors the necessary authorities to issue the remaining 8,839,928 Ordinary Shares. Details of the general meeting will be announced separately and a notice of general meeting will shortly be sent to shareholders.

Application will be made for the 8,946,405 Ordinary Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence on or around 22 October 2015. Application for the remaining 8,839,928 Ordinary Shares will be made following the forthcoming general meeting.

Following Admission of the 8,946,405 Ordinary Shares, the Company's total issued share capital will consist of 265,730,331 Ordinary Shares. As such the total number of voting rights in the Company will be 265,730,331 Ordinary Shares. This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Upon completion of the Placing and the Admission of the 16,953,000 Ordinary Shares following the general meeting, the percentage holding of a significant shareholder and director will increase and the revised holdings are expected to be as follows:

 
Shareholder    Holding prior    Percentage       Number of        Holding following  Percentage 
                to the Placing   of Ordinary      Placing Shares   Placing            of Ordinary 
                                 Shares prior     subscribed                          Shares following 
                                 to the Placing   for                                 Placing 
-------------  ---------------  ---------------  ---------------  -----------------  ----------------- 
Al Marjan 
 Limited        0                0%              16,953,000       16,953,000          6.04% 
-------------  ---------------  ---------------  ---------------  -----------------  ----------------- 
Matthew King   0                0%               627,838          627,838            0.24% 
-------------  ---------------  ---------------  ---------------  -----------------  ----------------- 
 

The net proceeds of the Placing will be used by the Company for general working capital purposes.

**ENDS**

For further information please visit www.savannahresources.com or contact:

 
    David Archer                      Savannah Resources plc          Tel: [phone] 
                                                                       5019 
    David Hignell / Gerry Beaney      Northland Capital Partners      Tel: [phone] 
     (Nominated Adviser)               Ltd                             1100 
    Jon Belliss / Elliot Hance        Beaufort Securities             Tel: [phone] 
     (Corporate Broker)                Ltd                             8300 
    Felicity Winkles/ Charlotte       St Brides Partners Ltd          Tel: [phone] 
     Heap                                                              1177 
 

**ENDS**

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.

Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo Project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).

Savannah has interests in three copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 19, 2015 02:00 ET (06:00 GMT)