Savannah Resources PLC has recently announced a successful increase in the gross proceeds from its fundraise. The company raised the amount from GBP 6.1 million to GBP 6.5 million after issuing 8.8 million new shares, resulting in GBP 400,000 being raised. This brings the total number of new shares issued for the fundraise to 139.2 million, and the company will now have approximately GBP 11.4 million in cash reserves.
Chief Executive Officer Dale Ferguson expressed great enthusiasm about Savannah’s current position, stating that the company is at an exciting juncture. The positive declaration of environmental impact received for the Barroso lithium project, followed by significantly improved project economics in their recent scoping study, marked important milestones for the company.
The successful fundraise, conducted effectively at market price, adds to these achievements. With the cash balance of approximately GBP 11.4 million, Savannah is now well-positioned to significantly advance its strategic European lithium project.
As of the date mentioned (2023-07-21), Savannah Resources’ stock price has increased by 10%, reaching 352.40 pence, and the company has experienced an impressive 32% increase over the past 12 months.
The significance of Savannah’s achievements becomes more apparent in light of the growing importance of lithium ion batteries in the transport and energy sectors. The European Commission’s classification of lithium as a ‘Critical Raw Material’ emphasises the rising demand for lithium in the EU. Savannah’s commitment to responsibly producing lithium raw material from its Barroso Lithium Project in Portugal aligns with the region’s energy transition and climate change goals. This effort positions Savannah to play a crucial role in Europe’s new lithium value chain, catering to the increasing domestic battery manufacturing forecast in the region and reducing reliance on imported battery-grade lithium raw material.