Savannah Resources PLC Implementation of Long-Term Incentive Plan (7904K)

TIDMSAV

RNS Number : 7904K

Savannah Resources PLC

13 April 2018

13 April 2018

Savannah Resources Plc

Implementation of Long-Term Incentive Plan

Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah', or the 'Company'), the AIM quoted resource development company, announces that upon the recommendation of the Company's Remuneration Committee, it has approved the implementation of a long-term incentive plan ('LTIP'), prepared with advice from KPMG LLP, and designed to incentivise the Company's Executive Directors and certain other members of the Senior Management team (the 'Participants').

The LTIP has been established to encourage long-term value creation for Savannah's shareholders and to further align the interests of the Participants with shareholders. Awards under the LTIP are structured in accordance with the Company's respective project operations in Portugal, Oman and Mozambique. The Board believes that the establishment of the LTIP and the performance conditions will incentivise the Participants and help to attract talented individuals in the future as the Company expedites the development of its mining projects.

Matthew King, the Company's Chairman said today: "The purpose of the LTIP is to focus management on achieving our key strategic goal of building cash generative and profitable mining operations. The performance conditions are intended as objective measures of our progress."

The LTIP provides for certain awards to be made to Participants upon the achievement of specified performance conditions determined by the Company's Remuneration Committee and approved by the Board. The Company's Non-Executive Directors are not eligible to participate in the LTIP.

The awards, Participants and initial performance conditions are summarised below:

 
 Project            Performance Condition                                 Timing 
-----------------  ----------------------------------------------------  --------------- 
 Oman               Commencement of mining                                December 
                                                                           2018 
-----------------  ----------------------------------------------------  --------------- 
 Mozambique         PFS completed and mining lease                        March 2019 
                     granted 
-----------------  ----------------------------------------------------  --------------- 
 Portugal           Feasibility study completed and                       March 2019 
                     a strategic initiative entered 
                     into (e.g. securing major industry 
                     contract/alliance/offtake/equity 
                     investment from the lithium industry) 
-----------------  ----------------------------------------------------  --------------- 
 
 Participant        Total Target     Form of Target    Applicable Project/Performance 
                     Award            Award             Condition 
-----------------  ---------------  ----------------  ---------------------------------- 
                                     40% Cash 
 David              100% of           60% Deferred 
  Archer             Salary           Equity           Oman               33.34% 
-----------------  ---------------  ----------------  -----------------  --------------- 
    Mozambique                                                            33.33% 
   --------------------------------------------------------------------  --------------- 
    Portugal                                                              33.33% 
   --------------------------------------------------------------------  --------------- 
                                     40% Cash 
                    100% of           60% Deferred 
 Dale Ferguson       Salary           Equity           Oman               33.34% 
-----------------  ---------------  ----------------  -----------------  --------------- 
    Mozambique                                                            33.33% 
   --------------------------------------------------------------------  --------------- 
    Portugal                                                              33.33% 
   --------------------------------------------------------------------  --------------- 
                                     40% Cash 
 Michael            100% of           60% Deferred 
  McGarty            Salary           Equity           Oman               33.34% 
-----------------  ---------------  ----------------  -----------------  --------------- 
    Mozambique                                                            33.33% 
   --------------------------------------------------------------------  --------------- 
    Portugal                                                              33.33% 
   --------------------------------------------------------------------  --------------- 
                                     40% Cash 
                                      60% Deferred 
 Paul O'Donoghue    40% of Salary     Equity           Mozambique         100% 
-----------------  ---------------  ----------------  -----------------  --------------- 
 
 

In respect of the Deferred Equity Target Awards: where the performance condition is met and the target awards are made to Participants, the deferred equity shall be released by 1/3 on each anniversary of the vesting date (up to the third anniversary) subject to the continued service of the Participant (unless the Participant is deemed a 'good leaver'). The maximum Deferred Equity Target Award value that may be issued in connection with the initial Performance Conditions stated above is GBP342,715 (representing 0.89% of the Company's current issued share capital at the current market price).

The Company may waive or vary a performance condition or other condition if events occur or circumstances occur which cause the Remuneration Committee to consider that the performance condition or other condition has ceased to be a fair measure of performance.

The implementation of the LTIP constitutes a related party transaction pursuant to AIM Rule 13. The Company's Non-Executive Directors, who are not party to the LTIP and are therefore independent directors for these purposes, having consulted with the Company's Nominated Adviser, consider the terms of the LTIP to be fair and reasonable insofar as Savannah's shareholders are concerned.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

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

 
    David Archer                  Savannah Resources      Tel: +44 20 
                                   plc                     7117 2489 
    David Hignell / Dugald        Northland Capital       Tel: +44 20 
     J. Carlean (Nominated         Partners Ltd            3861 6625 
     Adviser) 
    Christopher Raggett           finnCap Ltd             Tel: +44 20 
     / Emily Morris (Broker)                               7220 0500 
    Charlotte Page /              St Brides Partners      Tel: +44 20 
     Lottie Wadham                 Ltd                     7236 1177 
     (Financial PR) 
 

About Savannah

We are a diversified resources group (AIM: SAV) with a portfolio of energy metals projects - lithium in Portugal and copper in Oman - together with the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.

The group is listed and regulated on AIM and the Company's ordinary shares are also available on the Börse Stuttgart (SWB) under the ticker "SAV".

This information is provided by RNS

The company news service from the London Stock Exchange

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April 13, 2018 02:00 ET (06:00 GMT)