Savannah Resources (LSE:SAV) has detailed fresh progress at its Barroso Lithium Project after securing approval for a non-repayable Portuguese government grant of up to €110m, with formal execution of the investment agreement expected in the near term. The funding underpins continued advancement of the Definitive Feasibility Study (DFS) and environmental permitting, alongside refinements to open-pit designs and the completion of critical infrastructure planning covering water systems and road access.
Operationally, the company is preparing to launch an expanded programme of geotechnical and resource drilling, subject to the issuance of a temporary land access order. Exploration work has also delivered upside potential, with soil sampling identifying a new 400-metre lithium anomaly that extends an existing target area, opening the door to additional resources beyond the current DFS scope. Improving lithium prices and ongoing tightness in global supply have further strengthened commercial interest in the project’s future spodumene concentrate output.
In parallel, Savannah is intensifying engagement with local stakeholders and accelerating land acquisition efforts around the project area. At an industry level, the company has joined peers in urging the European Commission to introduce binding local-content requirements for lithium, a move aimed at strengthening European supply chains and enhancing the strategic importance of domestic projects such as Barroso within the EU.
From a market perspective, sentiment remains weighed down by the company’s early-stage financial profile, characterised by a lack of revenue, ongoing losses and continued cash outflows. While a relatively low level of debt offers some balance sheet resilience, technical indicators provide only limited near-term support, and valuation metrics remain constrained by negative earnings and the absence of dividend income.
More about Savannah Resources
Savannah Resources is an AIM-listed mineral development company focused on advancing the Barroso Lithium Project in northern Portugal. The project is widely regarded as Europe’s largest known spodumene lithium deposit and has been designated a Strategic Project under the European Critical Raw Materials Act. Savannah aims to supply lithium into Europe’s fast-growing electric vehicle and battery storage markets, positioning Barroso as a key domestic source of critical raw materials for the EU.
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