Savannah Resources (LSE:SAV) has strengthened its financial position with a total fundraise of approximately US$40 million, providing further momentum as the company advances its flagship Barroso Lithium Project in Portugal towards construction.
The company announced today that it has successfully completed its placing, subscription and retail offer, raising a total of £30.1 million, equivalent to approximately US$40.2 million, through the issue of 547.1 million new ordinary shares at 5.5 pence per share.
Importantly, the institutional placing was significantly oversubscribed, highlighting strong demand from new and existing investors for Savannah’s development strategy. The subsequent retail offer also raised £2.19 million, giving individual investors the opportunity to participate in the fundraise.
Funding the next phase of Barroso
The additional capital comes at an important stage for Savannah as it works towards a Final Investment Decision (FID) in 2027 and prepares for the construction of Barroso.
Savannah said the proceeds, together with existing cash reserves of US$15.5 million as at 31 July 2026, will provide more than US$53 million to support the project’s next phase.
A significant portion of the funds will be directed towards project development, including long-lead items, initial groundworks, processing plant and infrastructure engineering and preparations for the access road.
The company has also allocated funds towards project finance completion, environmental permitting, geotechnical and resource work, land use rights, community initiatives and additional working capital.
This provides Savannah with greater financial flexibility as it progresses multiple workstreams in parallel and continues to prepare Barroso for construction.
Strong investor support
The scale of the fundraise is particularly notable given the strong demand for the placing, which was significantly oversubscribed.
Savannah also received further support from major shareholders, including AMG Lithium B.V., Al Marjan, Pluris Investments and Telmory LDA, alongside participation from senior management. Chairman Rick Anthon also subscribed in the retail offer process.
For a development-stage company approaching a major construction decision, securing this level of funding and shareholder support represents an important step in maintaining momentum.
Chief Executive Officer Emanuel Proença said the company continues to experience strong support from a diverse pool of existing and new investors as Savannah moves closer to construction and first production.
Barroso enters a pivotal phase
The fundraise follows Savannah’s Phase 1 Definitive Feasibility Study, completed in July, which outlined an initial 14-year project life producing 183,000 tonnes per annum of 5.5% Li₂O spodumene concentrate, based on an initial JORC Reserve of 20 million tonnes at 0.99% Li₂O.
The DFS reported an estimated US$3.2 billion of EBITDA, US$1.9 billion of free cash flow, an unlevered post-tax NPV8 of US$913 million and a post-tax IRR of 43%, based on an average sales price assumption of US$1,788 per tonne.
Barroso is also classified as a Strategic Project under the European Critical Raw Materials Act, reflecting the wider European focus on developing more secure domestic supplies of critical minerals.
With lithium demand expected to increase significantly across Europe as the region develops its battery and energy-storage industries, Savannah is seeking to establish Barroso as a domestic source of spodumene concentrate.
A busy period ahead
Savannah now enters a particularly active period, with the company targeting several key milestones ahead of the proposed FID.
These include securing a second offtake partner, submitting the RECAPE environmental application, obtaining conditional project finance offers and progressing technical workstreams.
The company has also indicated that the funding will allow it to begin preparations for long-lead item orders and initial groundworks while strengthening its team ahead of construction.
The latest financing therefore gives Savannah additional resources to move the Barroso project from feasibility and development into the next stage of delivery.
For investors following Savannah, the combination of a significantly oversubscribed placing, additional retail participation, continued major shareholder backing and a substantial funding package marks another important milestone in the company’s ambition to develop a major lithium operation in Portugal.
With FID targeted for 2027 and construction preparation now progressing, Savannah Resources is entering an increasingly important phase in the development of Barroso and its ambition to become a European lithium producer.
For more information visit – https://savannahresources.com/
This article is based on company announcements and is not investment advice.
Leave a Reply