Option over additional ground at Mina do Barroso
- Savannah Resources has entered into an exclusive option agreement with Aldeia & Irmão, S.A. (‘Aldeia’), a private Portuguese mining company focused on clays, feldspars, kaolins and sands.
- If exercised the Option gives Savannah the right to acquire a Mining Lease over areas of land abutting the southern end of the Reservatorio Lithium Deposit. The Option expires on 25th September 2019.
- The purchase price of the Option is €350,000, payable in instalments. The total purchase price for the acquisition of the Mining Lease, is €3.25m, payable in monthly instalments following the transfer of the Mining Lease to a wholly-owned subsidiary of Savannah. The majority of these payments are expected to be made whilst the Mina do Barroso Project is in production and generating cash flow.
The acquisition of this ground not only increases the exploration potential of Savannah Resources’ Mina do Barroso Lithium Project, but could also allow for a potential reduction in capex/opex through the optimization of the site infrastructure locations. The ground under option is thought by the Company to contain a potential extension to the 3.2Mt, at a grade of 1.0% Li2O, Reservatorio Deposit, as well as, at least five known spodumene bearing lithium pegmatites. Importantly, if the Option is exercised, this ground would also provide Savannah with additional space to optimise the layout of the potential mine, processing plant and tailings dam, which could potentially lower the capital cost and operating costs of the Project.
Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto