Savannah Resources (LSE:SAV) has announced a significant capital raise of US$30 million (approximately £24.5 million) to advance the Barroso Lithium Project, which is located in Portugal. The company plans to issue 408 million shares at a price of £0.055 per share as part of this fundraising initiative. This effort is expected to attract various institutional and individual investors, including four of Savannah’s largest shareholders, who will contribute US$11.2 million through subscription agreements. The newly issued shares will be fully paid and will rank equally with existing shares.
The funds raised will be combined with Savannah’s existing cash reserves of US$15.5 million, allowing the company to finance several critical aspects of project development. This includes vendor data acquisition, the initiation of long-lead item fabrication, groundwork for access road construction, and the conditional granting of contracts for engineering procurement and management. Additionally, the funds will support bulk earthworks and front-end engineering design for the processing plant and associated infrastructure.
Savannah Resources has outlined a comprehensive plan for the use of the raised funds, which will also cover general administrative costs, project finance completion, environmental submissions, and applications for industrial permits. The company aims to secure land use rights and invest in community-related initiatives, alongside conducting geotechnical and resource-related work.
In July 2026, Savannah completed a phase one Definitive Feasibility Study (DFS) for the Barroso Lithium Project, which indicated a promising initial mine life of 14 years 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 US$3.2 billion in earnings before interest, taxes, depreciation, and amortisation, alongside US$1.9 billion in free cash flow 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 of 39 million tonnes with a lithium oxide grade of 1.05%, translating to 411,900 tonnes of lithium. Savannah Resources is strategically positioned to supply lithium to support Europe’s transition towards sustainable energy solutions, highlighting the project’s significance in the broader context of the region’s energy landscape.
