TIDMSAV
RNS Number : 6297T
Savannah Resources PLC
18 November 2019
18 November 2019
Savannah Resources Plc
Third Mutamba Mining Licence Conditionally Awarded
Highlights
-- The Minister of Mineral Resources and Energy in Mozambique
has conditionally awarded a third Mining Concession to the Mutamba
Project in Mozambique
o Concession 9228C has been awarded to Mutamba Mineral Sands
S.A, subject to the usual administrative conditions
o The Concession covers an area of 11,807 hectares ('ha') and is
valid until 3 September 2044
-- The Mutamba Project comprises one of the most significant
undeveloped heavy mineral sands deposits in the world
o Mutamba contains an Indicated and Inferred Mineral Resource of
4.4 billion tonnes ('Bt'), grading 3.9% total heavy minerals
-- Concession 9228C is contiguous with Concessions 9735C and
9229C which cover ground in the districts of Inharrime and Jangamo
in southern Mozambique
-- The Project benefits from high quality established transport infrastructure, including:
o Mozambique's main North/South EN1 highway runs through the
Project area
o The port of Inhambane is near the Project area
o A daily air service runs to the nearby city of Inhambane
o Reliable grid power is already installed and available in
close proximity to the Concessions
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), is pleased to announce that the
Minister of Mineral Resources and Energy in Mozambique has
conditionally awarded a third Mining Concession, 9228C, for the
world-class Mutamba Heavy Mineral Sands Project ('Mutamba' or the
'Project') in Mozambique, over which the Company operates a joint
venture ('Joint Venture') with Rio Tinto Limited ('Rio Tinto').
Mining Concession 9228C is valid up until 3 September 2044, with
the possibility of an additional 25-year extension.
To view the announcement with the illustrative maps and
diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6297T_1-2019-11-15.pdf
David Archer, Savannah's Chief Executive Officer said: "The
conditional award of the third Mining Concession to Mutamba
Minerals Sands SA completes the tenement set of the Mutamba Project
in Jangamo/Inharrime and represents a significant achievement for
Savannah in its Joint Venture with Rio Tinto. To finalise the
process, the normal administrative payments and processes need to
be completed; these are currently underway for all three licences.
We are completing the administrative conditions in a chronological
manner following which all three licences will be fully formalised
in due course, which, when completed, will continue to consolidate
our position in the Mozambican mining industry.
"The Project area covered by the Mining Concessions contains an
Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total
heavy minerals and constitutes one of the largest remaining mineral
sands deposits in the world that is yet to be developed. Therefore,
with the conditional approval of Concession 9228C, the potential to
create and operate a significant global project within the sector
can be realised, thus adding value to the Company and our
shareholders.
"Once these three Concessions are formalised, they will enable
the Joint Venture with Rio Tinto to progress the Pre-Feasibility
Study ('PFS') towards completion. Upon delivery of the PFS, our
interest in this world-class heavy mineral sands project will rise
from 20% to 35%, an exciting prospect for Savannah as we continue
to develop and diversify our portfolio of assets. I look forward to
updating our shareholders on this opportunity and also on our
flagship asset, the Mina do Barroso Lithium Project in Portugal,
which we are continuing to develop."
Further Information
The Mutamba Project comprises one of the most significant
undeveloped heavy mineral sands deposits in the world and contains
an Indicated and Inferred Mineral Resource of 4.4Bt, grading 3.9%
total heavy minerals.
Savannah is the operator of the Project, with an existing 20%
interest in a Consortium Agreement with Rio Tinto, which covers the
Project area. Savannah can increase its equity to 35% upon delivery
of the PFS, which is currently underway, and ultimately to 51% upon
delivery of a Feasibility Study. Notably, the Consortium Agreement
includes an offtake agreement on commercial terms for the sale of
100% of production to Rio Tinto (or an affiliate).
Three of the Project's four Mining Concession applications,
9228C, 9229C and 9230C, were submitted in January 2018. The process
of examining the applications commenced at the reopening of the
Ministry of Mineral Resources and Energy ('MIREME') in April 2018.
Due to the significance of the Project, the review was extensive
and included inputs from Central, Provincial and District levels of
Government. The fourth Mining Concession application, 9735C, was
submitted in September 2018.
Mining Concession 9228C has been conditionally awarded to
Mutamba Mineral Sands S.A., a wholly owned subsidiary of Rio Tinto
which forms part of the Mutamba Project Joint Venture; this brings
the total awarded Mining Concessions to three, covering a total
area of 39,881 ha. These are very well served by road and air
transport and are situated near the port of Inhambane. A 30MVA
electricity substation was inaugurated in January 2019 and sits at
the edge of the Project area. In addition, there is a 32MVA
electricity substation less than 100km away in the town of
Massinga.
Mining Licence application 9230C in the name of Mutamba Minerals
Sands S.A., at Chilubane, Gaza Province is still under
consideration.
Table 1. Summary of Mining Concessions Awarded
Name Area (Ha) Square Kilometres Expiry Date
9228C-Jangamo 11,807 118.07 03/09/2044
---------- ------------------ ------------
9735C-Jangamo 11,948 119.48 09/04/2044
---------- ------------------ ------------
9229C-Dongane/Ravene 16,126 161.26 06/05/2044
---------- ------------------ ------------
TOTAL 39,881 398.81
---------- ------------------ ------------
Figure 1. Mutamba Mineral Sands Project Map - Mining
Concessions
Competent Person and Regulatory Information
The information in this announcement that relates to exploration
results is based upon information compiled by Mr. Dale Ferguson,
Technical Director of Savannah Resources Limited. Mr. Ferguson is a
Member of the Australasian Institute of Mining and Metallurgy
(AusIMM) and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the December 2012 edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (JORC Code). Mr. Ferguson consents to the inclusion
in the report of the matters based upon the information in the form
and context in which it appears.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20 7117 2489
plc
David Hignell / Charlie SP Angel Corporate Tel: +44 20 3470 0470
Bouverat (Nominated Adviser) Finance LLP
Christopher Raggett (Joint finnCap Ltd Tel: +44 20 7220 0500
Broker)
Grant Barker (Joint Broker) Whitman Howard Tel: +44 20 7659 1225
Isabel de Salis / Cosima St Brides Partners Tel: +44 20 7236 1177
Akerman (Financial PR) Ltd
About Savannah
Savannah is a diversified resources group (AIM: SAV) with a
portfolio of energy metals projects - lithium in Portugal and
copper in Oman - together with the world-class Mutamba Heavy
Mineral Sands Project in Mozambique, which is being developed in a
consortium with the global major Rio Tinto. The Board is committed
to serving the interests of its shareholders and to delivering
outcomes that will improve the lives of the communities we work
with and our staff.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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