Savannah Resources buys Gentor Resources

10th Apr 2014 16:16

Savannah Resources' shares rose after saying it has agreed to buy Gentor Resources, which has interests in block five and block six copper projects in the Sultanate of Oman.The group has bought 100% of the subsidiary of Gentor Resources Inc., which has a 65% interest in block five and the right to earn up to a 70% interest in block six.The projects contain part of the "highly prospective" copper-rich Seminail Ophiolite belt in the Sultanate of Oman. Savannah said the belt is proven to host clusters of relatively high grade copper deposits with gold credits.It has an indicated and inferred mineral resource of 1.7m tonnes at 2.2% copper.Savannah also announced it has secured up to $6.3m in investment to fund its acquisition of Oman copper projects.The group has entered into an agreement to place up to $5.9m worth of new ordinary shares in Savannah and to issue $400,000 unsecured convertible instrument to Bergen Global Opportunity Fund, an institutional investment fund.Savannah's Chief Executive Officer, David Archer, said: "The deal not only underwrites the proposed acquisition announced today of Gentor Resources Inc's Oman copper project portfolio and the associated mid-term exploration investment but will also support further initiatives in our core geographies of Mozambique and Oman in our core commodities of heavy mineral sands and copper. "The $6.3m facility means that Savannah is exceptionally well placed being fully funded and having an already solid existing balance sheet, existing current assets of approximately £4m, an expanding portfolio of resources investments and strong news flows."Shares rose 10.71% to 7.75p at 16:16 on Thursday. RD