Date: 8 October 2013
Savannah Resources Plc
("Savannah", "SAV" or "the Company")
Completion of the Acquisition of 80% of Matilda Minerals Limitada
Further to its announcement on 9 September 2013, Savannah Resources plc (AIM: SAV), the AIM listed exploration company, announces that, it has completed the acquisition of an 80% shareholding in Matilda Minerals Limitada ('Matilda'). Matilda holds the highly prospective 180km2 Jangamo tenement ('Jangamo' or 'the Project') which is located in a world class mineral sands province in Southern Mozambique. Scout sampling of the Jangamo tenement by Savannah returned results of up to 18.1% total heavy minerals ('THM'), with ilmenite, rutile and zircon recorded in the mineral concentrate.
Savannah's CEO, David Archer, said "Having already secured agreement to acquire this highly prospective project located in a world-class major mineral sands province I am pleased to confirm that the Mozambican legal formalities are now complete''.
''The acquisition complements our current portfolio of gold exploration licences in Mali and our 25% shareholding and convertible loan note investment in Alecto Minerals Plc which has the Kossanto Gold Project in Mali and several gold / base metal projects in Ethiopia which are funded by a recently announced $14m joint venture with Centamin Plc. Together these interests underpin our commitment to building a multi-commodity exploration and development company."
The acquisition agreement was structured in a way that provided for a modest initial cash payment of up to AUD$125,000 (GBP72k) and a modest initial issue of ordinary shares in the Company of AUD$400,000 (GBP231k) equivalent of shares (10,643,107) at a price of GBP0.021888 per share upon the transfer of 80% of Matilda shares to Savannah. The vendors will also benefit from deferred consideration if certain exploration milestones are reached, with the issue of AUD$500,000 (GBP289k) equivalent of shares in Savannah upon the confirmation of each of the following JORC Inferred Resources: 150Mt @ 3% THM; 350Mt @ 3% THM and 500Mt @ 3% THM.
Application will be made for the new ordinary shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on or around 11 October 2013. Following Admission, the total number of voting rights in the Company will be 119,745,304 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.
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 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