?1.5 million Placing for Evaluation of Jangamo

RNS Number : 9530C

Savannah Resources PLC

24 March 2014

 

                                         Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

24 March 2014

                                                Savannah Resources Plc ('Savannah' or 'the Company')
                              £1.5 million Placing for Evaluation of Jangamo Mineral Sands Project, Mozambique

Savannah Resources plc, the AIM listed exploration company, advises that it has raised £1.5 million cash (before expenses) through the placing ('Placing') of 20,000,000 new ordinary shares at a placing price of 7.5p per ordinary share ('Placing Shares') with both new and existing investors.  N+1 Singer acted as broker to the Placing.

Overview

·         Strong cash position of over £2.0m following Placing for £1.5m cash

·         Placing price of 7.5p is at a 273% premium to the last placing in October 2013

·         Cash raised will fund the 2014 evaluation programme of the Company's flagship 180km² Jangamo Mineral Sands Project in Southern Mozambique ('Jangamo' or 'the Project') and provide general working capital

·         Recently completed drill programme confirmed concentrations of heavy minerals at Jangamo of up to 3.5% including ilmenite, rutile/leucoxene and zircon

·         Jangamo is located in a highly prospective, world class heavy mineral sands province

Savannah's Chief Executive Officer, David Archer, said, "The Placing is a major milestone for the Company as it fully funds our anticipated 2014 exploration programme at Jangamo, where we aim to define a maiden JORC resource in H2 2014.  With the Placing we currently have a cash balance of just over £2m which will cover both our current projects and our already low overheads whilst leaving a comfortable cash balance at the end of the year."

Details of Placing

Application will be made for the Placing Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM ('Admission').  It is expected that Admission will become effective and dealings will commence at 8.00 a.m. on or around 28 March 2014.  Following Admission, the total issued share capital will consist of 158,448,295 ordinary shares.  As such the total number of voting rights in the Company will be 158,448,295 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 net proceeds of the Placing will be used by the Group to fund its anticipated 2014 Jangamo work programme comprising geophysics, further drilling and mineralogical studies as well as for general working capital purposes.

Capital Structure and Cash Position

Following the admission of the 20,000,000 new ordinary shares of 1p each referred to in this announcement, the Company's capital structure will be as follows (the definitions of the equity Instruments in Table 1 are included in the Company's June 2013 Interim Accounts, and also detailed in the RNS announcement on 26 February 2014):

Equity Instrument	Quantity	Strike    Price    (Pence)	Expiry Date
Ordinary Shares	158,448,295	N/A	N/A
2010 Warrants	57,949,993	12.5	01/11/2014
2013 Warrants	11,111,112	3	19/07/2018
Part A Share Options (IPO)	2,100,000	10	01/11/2015
Part A Warrant Options (IPO)	2,000,000	12.5	01/11/2015
2013 Share Options	3,726,667	4.62	28/02/2018
2013 Share Options	9,821,776	3	19/07/2018
2013 Share Options	1,575,000	4.62	30/09/2018
Share Options	3,000,000	8.81	25/02/2019

Table 1: Savannah Resources Plc capital structure pro-forma table

The Company's cash position at 20 March 2014 was £0.59 million and does not include the proceeds of the Placing.

                                                                             **ENDS**

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

David Archer	Savannah Resources plc	Tel: [phone]
James Maxwell / Jen Boorer	N+1 Singer	Tel: [phone]
Felicity Edwards/ Charlotte Heap	St Brides Media & Finance Ltd	Tel: [phone]

Notes
About Savannah
Savannah Resources Plc (AIM: SAV) is a multi-commodity focussed exploration and development company. Through its 80% ownership of Matilda Minerals Limitada it operates the Jangamo exploration project 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 7-12Bn tonnes at 3-4.5% THM (published in 2008). In addition, Savannah owns an effective 19% strategic shareholding in Alecto Minerals Plc which 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 has a joint venture with Centamin Plc.  Under this joint venture, Centamin Plc is 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.

 

END

 

 

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