Date: 4 October 2013
Savannah Resources Plc
("Savannah", "SAV" or "the Company")
Completion of strategic sale of West Africa subsidiary to Alecto Minerals Plc
Further to the announcements made on 22 August 2013 and 17 September 2013, Savannah Resources Plc (AIM: SAV), announces, the completion of the disposal of the entire issued share capital of its subsidiary, AME West Africa Ltd ('AME West Africa') to AIM listed Alecto Minerals Plc ('Alecto') (the "Sale") following the satisfaction of all outstanding conditions.
David Archer, the Company's CEO commented: "The conclusion of the Sale to Alecto has securitised the Company's investment in the highly prospective Kossanto Gold Project in a manner which eliminates the associated exploration funding requirements and contingent obligations to the original vendor of Kossanto, whilst providing Savannah with continued exposure to the upside potential of the project. It also provides Savannah with exposure to the highly prospective Wayu Boda and Aysid Meketel gold/base metal projects in Ethiopia. The attractiveness of these projects has been underscored by a recently announced joint venture between Centamin Plc and Alecto, under which Centamin Plc is committing up to a total of US$14m in exploration funding to earn up to 70% of each project''.
As a result of the Sale and Savannah's subscription for new shares and a convertible loan note in Alecto, Savannah will hold a total of 121,739,130 shares in Alecto or 24.9% of its total enlarged issued share capital together with £350,000 of convertible loan notes which, upon conversion, would increase Savannah's ownership in Alecto's issued share capital by a further 5.9%. Savannah has undertaken not to convert the convertible loan notes to the extent conversion will trigger the obligation to make a mandatory offer under Rule 9 of the City Code on Takeovers and Mergers.
For further information please visit www.savannahresources.com or contact:
Savannah Resources plc
Tel: 44 (0)774 777 7914
James Maxwell / Jenny Wyllie
N 1 Singer
Tel: 44 (0)20 7496 3000
Savannah Resources Plc (AIM: SAV) is a multi-commodity focussed exploration company. Through its 80% ownership (legal formalities to be completed early October 2013 on this recent agreed acquisition) of Matilda Minerals Limitada it operates the Jangamo exploration licence in a world class mineral sands province in Mozambique which borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12 billion tonnes at 3-4.5% THM (published in 2008). The effectively 30% strategic shareholding in Alecto Minerals Plc provides Savannah with exposure to both the highly prospective Kossanto Gold Project in the prolific Kenieba inlier in Mali and also to the Wayu Boda and Aysid Meketel gold / base metal projects in Ethiopia for which Alecto have a JV with Centamin Plc, under which Centamin Plc are committing up to US$14m in exploration funding to earn up to 70% of each project. The Company is also evaluating additional opportunities to expand its portfolio and geographical focus.
This information is provided by RNS