Savannah Resources Ord Shs SAVNF

Barroso Lithium Project Update

[ScandiumPower]

Barroso Lithium Project Update (6 September 2023)
 
Savannah Resources Plc, the European lithium development company, is pleased to provide an update on several key workstreams at its 100% owned Barroso Lithium Project (the ‘Project’) including, its ongoing commercial negotiations, completion of the Definitive Feasibility Study (‘DFS’), the environmental licencing process (‘RECAPE’), and land purchasing and land access arrangements.
Highlights:
• Commercial arrangements for the Project: o Savannah has a strong negotiating position as it owns 100% of the Project and has yet to commit to any offtake arrangements
o Following the endorsement of the Project (the 'DIA') by the Portuguese environmental regulator, the level of strategic partnership interest in the Project has increased notably
o The Company is currently working to identify a shortlist of potential strategic partners which are willing to assist with the financing of the Project's construction
o Savannah expects to provide an update on the Project's commercial arrangements towards the end of the year
 
• DFS and RECAPE: Significant progress has been made on preparations for the commencement of both the DFS and RECAPE with six tenders issued, 4 tenders awarded and 2 tenders under final review
• DFS:
o DFS Processing Work Package: awarded to a collaboration between the plant construction experts Sedgman Pty Ltd (‘Sedgman’) and the processing experts Minsol Engineering Pty Ltd (‘Minsol’)
o DFS Infrastructure Work Package: tenders under final review
o DFS Drilling Programme Phase 1: awarded to EDASU S.L (‘EDASU’) and SPI S.A. (‘SPI'); drilling is expected to begin in mid-September on land owned by Savannah
 
• RECAPE:
o Barroso Lithium Project RECAPE contract: awarded to Quadrante Engenharia e Consultoria, S.A. (‘Quadrante’)
o Bypass Road RECAPE contract: tenders under final review
o Ongoing stakeholder consultation work: Completion of Social Impact Assessment, tender awarded to Community Insights Group PTE LTD (‘Community Insights’)
• Savannah expects to complete the environmental licencing and the DFS in the second half of 2024
• Land acquisition & access arrangements: o To date Savannah has acquired or is in the process of acquiring approximately 45% of the private land it requires for the Project from more than 40 local landowners.
o In total, Savannah expects to spend approximately €5M1 on the acquisition of private land identified to date which is required for the Project
o The Company has also made offers to two relevant community land management groups (‘Baldios’) for long term access to community lands required for the Project and associated compensation to community members. The Company estimate these offers would total approximately €10M1 over the life of the Project
o The Company will always seek to reach mutually acceptable agreements with all landowners and Baldios groups as it progresses the Project.