Savannah Resources Plc (LON:SAV) the AIM quoted resource development company, has said this morning that it has increased its interest in Matilda Minerals Limitada, which holds the prospecting rights in the 180km(2) Jangamo heavy mineral sands tenement in Mozambique (which is part of the Mutamba Heavy Minerals Sands Project and subject to the Company’s previously announced Consortium Agreement with Rio Tinto), to 100%, by way of the acquisition of a further 20% equity interest in the entity. This 20% interest has been secured in consideration of AUD100,000 (GBP60,000) payable by issue of 1,194,074 ordinary shares of 1p in the Company (‘Ordinary Shares’) at an issue price of 5.056p (calculated by reference to 30 day volume weighted average as above).
As part of this acquisition, Savannah announces that it has agreed with the vendors of Matilda to cancel the deferred consideration terms detailed in the Company’s RNS on 9 September 2013, for consideration of AUD50,000 (GBP30,000) payable by issue of 597,037 Ordinary Shares at an issue price of 5.056p (being the Company’s 30 day volume weighted average price for the 30 dealing days prior to the date of approved issue) (together with the Transfer Shares, the ‘Consideration Shares’).
Savannah’s CEO, David Archer said: “We’re pleased to have reached agreement with the vendors of Matilda to eliminate the deferred consideration obligations from the 2013 acquisition and also to finalise the purchase of the 20% not already owned by Savannah. I am pleased to confirm that this transaction has been approved by the Mozambique Ministry of Mineral Resources, which has been very supportive of our activities in country.”
Details of Consideration Shares Issue
Application will be made for the Consideration Shares, which shall 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 dealing will commence at 8:00am on or around 24 August 2017.
Following Admission, the Company’s total issue share capital will consist of 561,417,154 Ordinary Shares. As such, the total number of voting rights in the Company will be 561,417,154 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.
Issue of Share Options
The Company has also granted options over 500,000 Ordinary Shares (‘Share Options’). The Share Options are being issued to a member of the Company’s management in recognition of both his significant contribution towards progressing Savannah’s portfolio of development projects in 2017 and also as part of the Company’s policy to retain talented personnel.
The Share Options have an exercise price of 6.24p, an exercise period limit of four years subject to performance related milestones, including obtaining a mining licence for the Mutamba Project in Mozambique. The exercise price represents a premium of 35% to the closing price on 17 August 2017.
