Africa-Press – Mozambique. Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) has bowed out of its mineral sands joint venture with Rio Tinto in Mozambique to focus of its lithium assets in Europe.
Rio is paying Savannah US$9.5mln cash for its half share in the Mutamba joint venture, money which be used for further development of the Barroso lithium project in Portugal.
Savannah’s staff at Mutmaba will transfer to Rio Tinto, said the statement with the junior also exit all of its other interests in Mozambique.
David Archer, Savannah’s Chief Executive Officer commented: “With the Company’s focus moving to the further development and commercialisation of the Barroso Lithium Project, Mutamba has become non-core to Savanah and an exit from Mutamba has been agreed with our partner, Rio Tinto.
“The transaction allows us to concentrate both management resources and our increased cash reserves exclusively to lithium in the Iberian Peninsula.
“Savannah is proud of its accomplishments in Mozambique, where it has successfully operated the Mutamba Joint Venture since 2016.
“This included the major technical achievement of establishing an Indicated and Inferred Mineral Resource Estimate of 4.4Bt at 3.9% THM (total heavy minerals) by combining Rio Tinto’s historical data and our own exploration work.”
You may read the full Savannah Resources communique HERE.
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