Savannah Resources Ord Shs SAVNF

Savannah has already purchased more than 100 plots of land

[ScandiumPower]

Savannah has already purchased more than 100 plots of land in Boticas for a lithium mine

"In the ongoing civil action, filed by the Management Committee of the Covas do Barroso Wasteland Commission, against certain private landowners in relation to the land they sold to Savannah, the court rejected the request made by this committee for the company to suspend its work prospecting on the land in question while the case continues" in court, the company said. 

In its most recent update on the progress of the Barroso lithium mine project, in Boticas, published this Tuesday, the British mining company Savannah Resources reports on the "recent purchase of three additional plots" of land in the region, thus reaching the "mark of 100 lots acquired from local owners".

Furthermore, says the company in a statement, "in the ongoing civil action filed by the Management Committee of the Covas do Barroso Wasteland Commission, against certain private landowners in relation to the lands they sold to Savannah, the court rejected the request made by this committee for the company to suspend its prospecting work on the land in question while the case continues" in court. 

In November (when it had already secured 90 plots of land), the company said it was "totally false" that it was usurping land to build the Barroso lithium mine, in Boticas, following complaints made by members of the public, who accused Savannah of wanting to "entering by force" on land that they claim is vacant and that is already under litigation in court. "It is completely false that Savannah is usurping land to carry out the project. All activities that the company carries out respect the law and are publicly disclosed," stated the company.

The area in question is in dispute, with a complaint registered in court, so it is our understanding that until there is a decision they are not authorized to enter the area in dispute", said Aida Fernandes, president of the Local Community of Baldios de Covas from Barroso. 

According to Savannah, the investment value in purchasing land is around five million euros, which will be paid to local owners.

"We aimed to reach the mark of 100 plots of land acquired, which happened recently, but we continue to treat all project workflows with equal importance," said Savannah's CEO, Emanuel Proena, adding that, on the ground, the company is to progress "in the work necessary to complete the environmental licensing process". The Barroso mine received a conditional green light from the APA, and Savannah expects the environmental licensing to be completed in 2024. 

At the end of April, Savannah will publish its annual results for 2023 and will organize a new online event for investors. 

In addition, there are ongoing conversations in commercial and financing terms. A month ago, in early March, the company announced that the ongoing process to identify strategic partners for the project in the north of the country has entered a second phase, after several companies along the lithium value chain expressed their interest. . Emanuel Proena informed investors that  strategic partnerships should be signed by April 2024. Furthermore, the company is also looking for "additional sources of public financing" for the lithium exploration that it wants to set up in Portugal to start in 2026. 

"Savannah's process to identify strategic partners has now progressed to phase two, on schedule. Interest has been confirmed from several relevant groups that operate in the lithium battery value chain or have plans to enter it," announced the company in a statement, adding: "As planned, we are now moving forward with a shortlist of potential partners, who are expected to carry out additional due diligence in the coming weeks, with Savannah management, as well as process advisors Barclays and Barrenjoey.

We now hope to continue with those who are part of the "short list" that resulted from this process and who have demonstrated a significant interest in working with Savannah to ensure that the project is developed to its full potential", explained the person in charge, noting that "although this process continues to be the main focus of efforts to commercialize the project, our position in terms of capital allows us to continue to advance prudently in the work necessary to complete the environmental licensing process". 

In parallel with this process of choosing strategic partners, Savannah noted that it "continues to research and analyze sources of public financing that may be available", which includes "several financing solutions from the Portuguese Government and some financing opportunities from the European Union, which are applicable to the project given its focus on a strategic and critical raw material", such as lithium. 

"At the same time, the approval of the Critical Raw Materials Law by the European Parliament last year generated a new focus of interest and development of projects at national level, as is the case with ours. As a result, they became additional sources of public financing are available, which Savannah is evaluating, so that we can maximize the financing options available as we move into the production phase", explained Emanuel Proena. 

According to Savannah, the "Expression of Interest" process is based on the search for partners, especially with a view to purchasing the lithium ore that will be produced by the company in Portugal. To do this, candidates had to prove themselves and guarantee that they are interested in keeping part of the production, which then allows the company to secure new sources of financing. According to the company, among the candidates there are several different profiles: some with the capacity to process lithium, others looking for a financial or strategic partnership. 

"As it is scaled today, lithium production from the Barroso mine will have the capacity to supply two or three gigabattery factories in Europe. Therefore, it is a project relevant enough to meet 30 to 50% of the objective of the European legislative act on critical raw materials" , Emanuel Proena also reinforced to investors. In Boticas, the company wants to extract enough ore to be refined (in Portugal, preferably) and help produce more than 500,000 electric car batteries per year.

Savannah plans to begin building the Barroso mine project in 2025, to begin operating in 2026.With an initial budget of 110 million euros for the initial phase of the project (40 million already spent between 2017 and 2022), Savannah has since more than doubled this amount and is now talking about an investment of more than 260 million just for infrastructure and construction. of the open pit mine. The final investment decision will be made in 2025.

Regarding the new lithium prospecting tender, Savannah admits that "if new opportunities arise, they will be evaluated." In September the Government said that the competition would be "launched in the coming months". Now he has announced that it will have to be left for the next Executive. In addition to mines, Portugal also wants to have lithium refineries.

Google translation from: 
https://www.jornaldenegocios.pt/empresas/energia/detalhe/savannah-ja-comprou-mais-de-100-lotes-de-terreno-em-boticas-para-mina-de-litio