Savannah Resources (LSE:SAV) has announced a significant capital raise of US$30 million (approximately £42.2 million) to advance the development of its Barroso Lithium Project in Portugal. This fundraising initiative will involve the issuance of 408 million shares at a price of £0.055 per share. The company has entered into subscription agreements with a mix of institutional and individual investors, including four of its largest shareholders, to secure US$11.2 million from this round.
The capital raised will be strategically allocated towards various aspects of project development. This includes vendor data acquisition and the initiation of fabrication for long-lead items, groundwork for access road construction, and the conditional grant of contracts for engineering procurement and management. Additionally, funds will support bulk earthworks and front-end engineering design for the processing plant and associated infrastructure.
Savannah Resources plans to utilise its existing cash reserves of US$15.5 million alongside the new funds for a comprehensive range of activities. These will encompass general and administrative costs, project finance completion, environmental submissions, and applications for industrial permits. The company will also focus on bypass road designs, geotechnical work, resource-related studies, and securing land use rights, as well as community initiatives and working capital.
In July 2026, Savannah completed a phase one Definitive Feasibility Study (DFS) for the Barroso project, which highlighted a promising initial 14-year mine life with an annual production capacity of 183,000 tonnes of lithium oxide at a grade of 5.5%. The DFS projected robust financial outcomes, including earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$3.2 billion, free cash flow of US$1.9 billion, and a post-tax net present value of US$913 million.
The Barroso Lithium Project is recognised as Europe’s largest hard-rock spodumene asset, boasting a resource estimate of 39 million tonnes at 1.05% lithium oxide, equating to approximately 411,900 tonnes of lithium. Savannah Resources is committed to supplying European lithium to support the continent’s energy transition, positioning itself as a key player in the growing lithium market critical for electric vehicle batteries and renewable energy storage solutions.
