Savannah Resources sells last remaining Mozambique-based mining concession to MRG Metals

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Savannah Resources sells last remaining Mozambique-based mining concession to MRG Metals

2:48 CAT | 09 Nov 2022

Savannah Resources is the owner of the Barroso Lithium Project, located close to key infrastructure in Northern Portugal which contains the most significant spodumene lithium resource in Western Europe

Binding US$800,000 agreement was signed via subsidiary AME East Africa Limited

Savannah Resources PLC , the European lithium development company, has today signed a binding heads of agreement (HoA) with MRG Metals Limited via its subsidiary AME East Africa Limited.

Under the agreement, MRG may acquire Savannah’s final mining concessions in Mozambique, owned by Savannah’s subsidiary Matilda Minerals Lda, for US$800,000 paid in cash or shares.

MRG has an exclusive 45-day due diligence period commencing on 8 November 2022 to validate all relevant costs, technical aspects of the licence, and any legal, regulatory, tax or commercial matters.

Dale Ferguson, chief executive officer of Savannah Resources said: “We are delighted to have entered this HoA with MRG in relation to Savannah’s last remaining mining concession in Mozambique.

“MRG has been operating in Mozambique for a number of years and has shown its commitment to the country’s mineral sands sector through the planned development of its Corridor Sands Project.”

MRG has agreed to pay a 1% royalty in years where the licence area generates a net profit after tax.

MRG Metals chairman, Andrew Van Der Zwan said: “We are pleased to have worked with Savannah to reach the terms for the proposed transaction that allows both parties to potentially gain from a small, yet high-quality, asset in the Jangamo Project.

READ: December will bring heavy sands exploitation to Jangamo and Inharrime

Savannah Resources pulling out of Mozambique – AIM

Source: Proactive Investors