The Barroso lithium project in Portugal was given the green light on 14 July after securing £6.1 million, which is the equivalent of $8 million through stock.
The project, which is being partaken by Savannah Resources plc, a European lithium development company, is expected to be the biggest mine for the battery metal in Western Europe
The company raised £2.4 million (before expenses) through the Placing of 51,151,711 Placing Shares at an Issue Price of 4.67 pence per Placing Share and £3.7 million through the Subscription for 79,203,932 Subscription Shares at the Issue Price.[1]
According to Dale Ferguson, the Chief Executive Officer, the funds will put Savannah Resources now on track to completing the DFS drilling program, upgrading the mineral resource estimate, designing the processing plant, and infrastructure, among others.
“Following the Placing and Subscription, Savannah now has approximately £11 million in cash, which means we can move forward with great confidence, knowing that we have the monetary reserves available to complete the DFS drilling program, the Mineral Resource Estimate upgrade, the RECAPE submission, the processing plant and infrastructure design, plus team expansion and community relations development,” said Ferguson.
Savannah Resources received an environmental impact assessment (EIA) from the Portuguese government in May after a successful acquisition of 75% of the lithium project but faced red tape and missed a deadline due to Portugal’s parliamentary elections, despite hoping for a successful permit.
Hence, the newly acquired funds will be useful in progressing on the permits front for Savannah Resources.
Savannah Resources Plan for the Barroso Lithium Project
The primary aim for Savannah in the Barroso project is to provide Portugal with a long-term, locally sourced lithium raw material supply.
The project estimates 27 million tonnes of lithium, with 285,900 tonnes of Li2O, to meet Europe’s lithium demand in the coming decades.
This will help to reduce Europe’s dependence on fossil fuels and speed up its “green transition” by expanding Europe’s growing lithium battery value chain.
The company’s plan is to reduce direct emissions to zero and indirect emissions by 54% from the 2019 forecast, focusing on miner-purchased inputs.
This is achieved through a potential reduction in the plant’s power requirement.
The company is also expected to expand its revenue stream through the sale of the mine’s by-products feldspar and quartz, to clients in Spain and the surrounding area in the ceramics industry.
Europe’s top lithium producer, Portugal, accounts for 11% of the global market.
Still, its output is primarily used for ceramics and glassware, so Europe relies on imports from Latin America’s Lithium Triangle, Australia, and China.
Savannah aims to make itself and Portugal the largest producers of lithium for Europe’s battery value chain.
References
- Savannah Resources, ‘Result of £6.1 million Placing & Subscription’, 14 July 2023, https://www.savannahresources.com/investors/rns-feed/rns-announcements/?rid=4353500[↩]
