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(Sharecast News) - Savannah Resources announced on Wednesday that it has raised a total of 4.8m through a combination of a placing, subscriptions, and a successful RetailBook offer, to help advance its lithium project.
The AIM-traded European lithium developer said the fundraising was well supported by both existing shareholders and new investors from the UK and Portugal.
It said the RetailBook offer raised 0.3m through the issue of 8.6 million shares at the placing price, while an additional subscription from existing shareholders, Portuguese investors, and Savannah staff raised 2.26m, an increase from the 2.02m previously flagged.
Among the participants were several members of Savannah's management team, including chair Rick Anthon, chief financial officer Henrique Freire, CCO Michael McGarty, board director Dale Ferguson, and community relations manager Thomas Gaultier.
"It is very pleasing to see the level of interest the retail element of Savannah's fundraise has received," said chief executive Emanuel Proena.
"It is extremely satisfying that the aggregate Fundraise was so well supported by existing shareholders and has attracted significant investment from both of our 'core' countries, Portugal and the UK."
Proena highlighted the sharp increase in Portuguese participation in the fundraise, rising to more than 40% from just 1% in 2023.
"Savannah understands the trust and responsibility that is placed in our company by shareholders.
"This financial security enables us to maintain our progress and ensure that we are well placed in the future to leverage the better lithium prices and market conditions which are forecast," he added.
Combined with its pre-existing cash balance of 9.14m as of 27 June, Savannah said it now had a strong financial position to advance its lithium project beyond the current definitive feasibility study.
A total of 136.6 million new shares would be issued under the fundraise.
Admission of the RetailBook and additional subscription shares to trading on AIM was expected at 0800 BST on 4 July.
Following admission, Savannah's enlarged share capital would total 2.31 billion shares.
At 1118 BST, shares in Savannah Resources were down 2.36% at 3.52p.
Reporting by Josh White for Sharecast.com.