Pause of Funding Facility

RNS Number : 0008G

Savannah Resources PLC

01 May 2014

 

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

1 May 2014

Savannah Resources Plc

    Pause of Funding Facility

Savannah Resources Plc (AIM: SAV) advises that, as a result of general share market conditions for junior resources companies, it has paused further draw-downs of funds from its facility with the Bergen Global Opportunity Fund, LP ("Bergen"), for a period of 30 days. A total of US$800,000 has been drawn down under the facility to date, and Bergen has retained all, and has not sold any of, the shares issued to it under the facility.

By way of additional background, the right of pause which has been exercised by Savannah is a term of the facility agreement. Further, under the facility agreement, Savannah has the right to terminate the facility at any time and not to issue further shares on payment of a modest termination fee. In addition, the facility agreement contains contractual limitations on Bergen's ability to dispose of shares following any subscription, as well as a prohibition on short selling. For clarity, Bergen has been a responsible corporate citizen and has complied with all of its obligations to Savannah.

David Archer, the CEO of Savannah said today "The facility has been carefully crafted with Bergen to provide flexibility in various market scenarios. The current pause is an example of the optionality afforded by the facility when market conditions change."

**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.  This borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12Bt at 3-4.5% THM1 (published in 2008).

In addition, Savannah owns an effective 20.9% 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.

Savannah holds two copper projects in the Semail Ophiolite (Oman), the world's largest and best preserved thrust sheet of oceanic crust and upper mantle, provides Savannah with an excellent opportunity to potentially evolve into a mid-tier copper producer in a relatively short time frame.  Small to medium sized Cyprus-type Cu-Au VHMS deposits have been worked in the Semail Ophiolite since ancient times. Modern exploration has identified many small to medium sized high grade copper deposits within the belt which as yet have not been brought into production. Together with its Omani partners Savannah will look for ways to aggregate and explore as many of these opportunities as possible with a view to providing the critical mass for a central operating plant to develop the deposits.

 

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