Savannah Resources generates funds for Jangamo project

24th Mar 2014 13:10

Diversified exploration group Savannah Resources has placed 20m share to raise funds for its 2014 exploration programme at Jangamo in southern Mozambique.The AIM-listed firm said it raised £1.5m before expenses after placing the shares at 7.5p each. The group recently completed a drill programme which confirmed concentrations of heavy minerals at Jangamo of up to 3.5% including ilmenite, rutile/leucoxene and zircon. Savannah's Chief Executive Officer, David Archer, said, "The placing is a major milestone for the company as it fully funds our anticipated 2014 exploration programme at Jangamo, where we aim to define a maiden JORC resource in the second half of 2014. "With the placing we currently have a cash balance of just over £2m, which will cover both our current projects and our already low overheads whilst leaving a comfortable cash balance at the end of the year."The work programme will comprise geophysics, further drilling and mineralogical studies. Any remaining funds will be used for general working capital purposes.NR