Savannah Resources Secures $26 Million for Lithium Project Expansion in Portugal
Savannah Resources has bolstered its financial position with a $26 million investment,earmarked for the next phases of development of its lithium mining project in Boticas,Vila Real,Portugal. This follows a recent 40% increase in the project’s confirmed lithium reserves, now totaling 39 million tons - placing it among the largest lithium mining projects globally with resources up to 100 million tons.
The company highlighted the project’s significance, stating it is indeed currently ranked 11th globally among projects with up to 100 million tons of resources. The Barroso mine project trails behind larger projects like NAL in Quebec, Canada (100 million tons), Adina (78 million tons) and PAK/spark (70 million tons), both also located in Canada.
Savannah recently acquired the Aldeia mining concession,which CEO Emanuel Proença described as a reinforcement of project quality,noting the resources are “almost to the surface.” He further stated, “Europe’s biggest lithium deposit just got bigger.”
The reserve increase, announced in September, saw the JORC (confirmed) resource rise to 39 million tons, while the estimated exploration resource increased by 200%, to a range of 35-62 million tons. Savannah believes the project has the potential to exceed 100 million tons of lithium mineralization, enough to support the production of 47 million electric vehicles – equivalent to eliminating the oil consumption of the entire automobile fleets of Portugal, France, and the netherlands.
A $12 million capital increase funded the Aldeia concession purchase and ongoing project development. Existing Portuguese investors, Pluris (Mário Ferreira) and Lusiaves, maintained thier 10% stakes. German AMG remains the largest shareholder with almost 16%, while Al Marjan, an Omani investment fund, saw its stake decrease slightly to 11.1%.
The capital raise also attracted new investment from companies in the battery and critical minerals sectors, and also mining-focused funds, including two from Spain and a significant contribution from a Portuguese fund whose identity will be revealed shortly. Institutional investor weight increased from 6.5% to 11.5%.
Emanuel Proença expressed confidence in the company’s position, stating the increased funding represents “a good sign” and brings them closer to project delivery, emphasizing the “strong cash position” now held by Savannah Resources.