Savannah Resources PLC Update on £1.24m Subscription by Major Shareholder (0450O)

TIDMSAV

RNS Number : 0450O

Savannah Resources PLC

30 September 2019

30 September 2019

Savannah Resources Plc

Update on GBP1.24 million Subscription by Major Shareholder and Director

Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that further to the recent placing and subscription to raise GBP3.76 million (before expenses), as announced on 16 September 2019 (the 'Placing'), Al Marjan Ltd ('Al Marjan'), the Company's largest shareholder, has now subscribed for 60,000,000 new ordinary shares of 1p each in the Company ('Ordinary Shares') at a price of 2p per Ordinary Share (the 'LoI Subscription Shares'), along with other subscribers raising cash proceeds of GBP1.24 million (the 'LoI Subscription').

Savannah's CEO, David Archer said: "In the June 2019 Interim Accounts, the Company's Chairman, Matthew King, rightly acknowledged that particular thanks goes to the Al Marjan Group which remains the Company's largest shareholder, after its GBP1.2m commitment to the September financing. Furthermore, companies which have received such solid support from Directors and related parties ("Directors") are rather rare amongst those within our peer group - the total net cash investment by the Directors is an impressive GBP9.8 million cash to date, and the direct and indirect interest held by Directors and management represents 28.8% of the shareholder register."

Details of the LoI Subscription

-- Al Marjan holding to stand at 20.68% following its LoI Subscription for GBP1.2 million for 60,000,000 LoI Subscription Shares.

-- Alternate Director, Manohar Pundalik Shenoy, is subscribing for 2,000,000 LoI Subscription Shares for GBP40,000, and an employee for 100,000 LoI Subscription Shares for GBP2,000.

-- As previously announced, the proceeds of the LoI Subscription, when aggregated with the net Placing proceeds the Company has already received, will predominantly be used to complete the Definitive Feasibility Study (the 'DFS') on the Mina do Barroso Lithium Project located in northern Portugal - the Company's flagship project - and will also be used to maintain its projects in Mozambique and Oman, which are currently undergoing finalisation of mining lease applications, as well as for general working capital purposes.

Related Party Transaction

The subscriptions by Al Marjan and Mahohar Pundalik Shenoy are deemed to constitute Related Party transactions in accordance with AIM Rule 13 of the AIM Rules for Companies (the "Transaction"). Matthew King, David Archer, Dale Ferguson and James Leahy, who are directors independent of the Transaction consider, having consulted with the Company's Nominated Adviser, the subscriptions of Al Marjan and Manohar Pundalik Shenoy to be fair and reasonable insofar as Savannah's shareholders are concerned.

Voting Rights and Regulatory Information

Application will be made for the 62,100,000 LoI Subscription Shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence at 8:00am on or around 3 October 2019.

Following Admission of the LoI Subscription Shares, the Company's total issued share capital will consist of 1,297,459,820 Ordinary Shares. As such the total number of voting rights in the Company will be 1,297,459,820 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.

The notifications in appendix 1, made in accordance with the requirements of the EU Market Abuse Regulation (Regulation (EU) 596/2014), provides further detail.

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

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

 
    David Archer                       Savannah Resources      Tel: [phone] 
                                        plc                     2489 
    David Hignell / Charlie            SP Angel Corporate      Tel: [phone] 
     Bouverat (Nominated Adviser)       Finance LLP             0470 
    Christopher Raggett (Joint         finnCap Ltd             Tel: [phone] 
     Broker)                                                    0500 
    Grant Barker (Joint Broker)        Whitman Howard          Tel: [phone] 
                                                                1225 
    Melissa Hancock / Cosima           St Brides Partners      Tel: [phone] 
     Akerman (Financial PR)             Ltd                     1177 
 

About Savannah

Savannah is 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. The Board is committed to serving the interests of its shareholders and to delivering outcomes that will improve the lives of the communities we work with and our staff.

The Company is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".

Appendix 1

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM:

 
 1.   Details of the person discharging managerial responsibilities/person 
       closely associated 
 a)   Name:                                      Manohar Pundalik Shenoy 
     -----------------------------------------  ------------------------------ 
 2.   Reason for the notification 
     ------------------------------------------------------------------------- 
 a)   Position/status:                           Alternate non-executive 
                                                  director 
     -----------------------------------------  ------------------------------ 
 b)   Initial notification/Amendment: 
     -----------------------------------------  ------------------------------ 
 3.   Details of the issuer, emission allowance market participant, 
       auction platform, auctioneer or auction monitor 
     ------------------------------------------------------------------------- 
 a)   Name:                                      Savannah Resources Plc 
     -----------------------------------------  ------------------------------ 
 b)   LEI:                                       213800UCK16HW5KKGP60 
     -----------------------------------------  ------------------------------ 
 4.   Details of the transaction(s): section to be repeated 
       for (i) each type of instrument; (ii) each type of transaction; 
       (iii) each date; and (iv) each place where transactions 
       have been conducted. 
     ------------------------------------------------------------------------- 
 a)   Description of the financial instrument,   Ordinary Shares of GBP0.01 
       type of instrument:                        each 
 
       Identification code:                       ISIN: GB00B647W791 
     -----------------------------------------  ------------------------------ 
 b)   Nature of the transaction:                 Purchase of Ordinary Shares 
     -----------------------------------------  ------------------------------ 
 c)   Price(s) and volume(s):                      Price(s)    Volume(s) 
                                                     2 pence         2,000,000 
                                                               --------------- 
     -----------------------------------------  ------------------------------ 
 d)   Aggregated information:                    Single transaction as 
       Aggregated volume:                         in 4 c) above 
       Price: 
     -----------------------------------------  ------------------------------ 
 e)   Date of the transaction:                   29 September 2019 
     -----------------------------------------  ------------------------------ 
 f)   Place of the transaction:                  Outside a trading venue 
     -----------------------------------------  ------------------------------ 
 

**ENDS**

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September 30, 2019 02:03 ET (06:03 GMT)