Savannah Resources PLC (LON: SAV) have seen their shares spike on Wednesday after the firm won a new mining licence in Mozambique.
Savannah Resources Plc is a multi-commodity development company focused on building cash generative and profitable mining operations. The firm has operations in Portugal, Oman and Mozambique.
Shares in Savannah Resources spiked 3.82% to 2p on the announcement. 11/12/19 12:01BST.
Last week, Savannah saw their shares in green as they announced progress in their Mozambique operations.
The firm said the minister of Mineral Resources & Energy has issued Mining Licence 9735C to its subsidiary Matilda Minerals Lda. The licence covers 11,948 hectares. It is valid to April 2044 and includes a 25-year extension option.
Notably, company operates the Mutamba project in a joint venture with FTSE100 listed Rio Tinto (LON: RIO).
Rio Tinto saw their shares spike at the end of November following a pledge to take part and underwrite a fundraise by invest Energy Resources of Australia.
Today, Savannah have said that they have won a new mining licence award for the Mutamba mineral sands project in Mozambique.
The 16,126 hectare licence is valid until May 2044, with the possibility of an extension for another 25 years, said Savannah. The first mining concession award at Mutamba was announced on Monday by Savannah.
“We are delighted with progress thus far at Mutamba, which we’re developing in partnership with Rio Tinto PLC. We believe this is one of the most attractive undeveloped mineral sands deposits in the world,” said Savannah’s Chief Executive David Archer.
“Having received a second mining licence, we’re now waiting on a third, which has already been conditionally awarded; together, the three concessions contain an indicated and inferred mineral resource of 4.4 billion tonnes of ore at 3.9% total heavy minerals.”
Savannah hold a 20% stake in this project, and this could rise to 35% once a pre-feasibility study is delivering, a process ongoing. If a feasibility study is achieved, Savannah’s stake could go to 51%.
Shareholders of Savannah will be excited on this mornings announcement and should retain optimism for the firm to deliver strong results with the help of Rio Tinto.
Rio Tinto, have made an ensured effort to collaborate with other firms in the industry as seen with Savannah.
Last week, Apple Inc said they had bought the first batch of carbon-free aluminum which was supplied by Elyis, a Montreal based firm composing of Alcoa Corp and Rio Tinto.
