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Cash Placing of £1.75 million
Savannah Resources (AIM:SAV) has raised £1,747,473 (before expenses) through the placing of 98,295,329 ordinary shares of 1.0p each at a placing price of 1.777778p per ordinary share to Al Marjan Limited, an existing investor.
HIGHLIGHTS:
· Raised gross proceeds of £1,747,473
· Funds will predominantly be used to fund the development of the Company’s copper projects in Oman, with production targeted to commence in late 2017, and to provide working capital
· The Placing price of 1.777778p is an 11% premium to the 50 day VWAP, underlining the strategic nature of the investment
· The Investor, a privately owned investment trust, will become the Company’s largest shareholder at 29.99%
· A relationship agreement has been agreed with the Investor and it is envisaged that the Investor will appoint two nominees and an alternate for each nominee to the Savannah Board in due course
· The investment gives the Company a cash balance of ~£2 million
David Archer, Savannah’s Chief Executive Officer said today “We are delighted to see very solid support for Savannah’s investment case with this significant follow on investment by Al Marjan Limited, who joined the share register in late 2015 and is strongly supportive of the Company’s growth strategy. This Placing puts Savannah in an excellent position to continue executing its business plan, targeting early copper production in Oman in late 2017 and progressing our mineral sands initiative in Mozambique. Furthermore, it enhances Savannah’s already favourable profile within the Oman mining industry.”
The Placing will be executed in two tranches. The Company will shortly issue 70,864,561 Ordinary Shares at a price of 1.777778p to cover the first tranche of the Placing and, at the Company’s forthcoming AGM, will seek shareholder approval to give the Directors the necessary authorities to issue the remaining 27,430,768 Ordinary Shares. Details of the Annual General Meeting will be announced separately in due course.
Application has been made for the 70,864,561 Tranche 1 Shares, which will rank pari passu with the existing Ordinary Shares in the Company, to be admitted to trading on AIM. It is expected that Admission will become effective and dealings will commence on or around 18 February 2016. Application for the remaining 27,430,768, Tranche 2 Shares will be made as soon as practicable following the forthcoming Annual General Meeting.
Following Admission of the 70,864,561 Tranche 1 Shares, the Company’s total issued share capital will consist of 356,730,331 Ordinary Shares. As such the total number of voting rights in the Company will be 356,730,331 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.
