Aim-listed miner Savannah Resources will today set out plans to take 100 per cent control of its lithium mine in Portugal, in a deal valued at around £12m.
The remaining 25 per cent interest in the mine will be bought from minority shareholders including Slipstream Resources, which itself currently holds a 5.1 per cent stake in Savannah.
If the all-share offer is voted through at Savannah’s Annual General Meeting, it will result in Slipstream owning a 16 per cent stake in the company.
The deal gives Savannah full control of its flagship asset Mina do Barroso, in the country’s north, which is Europe’s most significant spodumene lithium deposit.
Savannah’s chief executive David Archer said the deal would provide simplicity and clarity ahead of any permitting and development decisions.
“Legislators and battery end users in the region have come to appreciate the need for Europe to have domestic sources of battery raw materials as the region seeks to reduce emissions from the transport sector via the transition to electric vehicles.
"As a result, we see great economic and strategic value in the project and we are pleased to have the opportunity to increase our stake to 100 per cent.”
Last week the Savannah said lit had recorded a 17 per cent resource increase at Mina do Barroso for the first quarter.