Savannah Resources raises £0.55m in share placing

29th Jun 2015 07:11

Savannah Resources said on Monday that it has raised approximately £0.55m in cash through the placing of 21.9m shares at 2.5p each with both new and existing investors.The net proceeds will be used to fund work on the recently-announced joint venture with Rio Tinto comprising the Mutamba/Jangamo heavy minerals sands project in Mozambique, including the definition of a Joint Ore Reserves Committee compliant resource and completion of the scoping study.Chief executive officer David Archer said: "With these funds, which are being raised at a premium of 25% to the 20 day volume-weighted average price prior to the Rio Tinto joint venture announcement, Savannah is well placed to deliver on these objectives."The funds will also be used for general working capital purposes.RFC Ambrian acted as broker to the placing and admission of the shares to trading on AIM is expected to become effective on 2 July 2015.Shares closed down 2.6% at 2.85p on Friday.