30 January 2024
Savannah Resources
Plc
(AIM: SAV, FWB: SAV and SWB:
SAV) ('Savannah', or the
'Company')
Operation Influencer:
Reassuring conclusions from Independent Legal
Reviews
Savannah Resources Plc, the
developer of the Barroso Lithium Project (the 'Project') in
Portugal, Europe's largest spodumene lithium deposit, provides an
update on the actions it has taken in response to the investigation
launched by the Portuguese Public Prosecutor's Office ('PPO') on 7
November 2023 ('Operation Influencer', the
'Investigation').
Summary
Following receipt of a full legal
assessment which included due diligence by independent experts of
relevant accounts, facts and documents in Savannah's possession,
Savannah can confidently reaffirm its solid legal standing. The
Independent Review (as defined below) concludes based on the evidence examined that there was
no improper use of Company money or evidence of
wrongdoing by the Company. The Legal Opinions (as defined below)
conclude that Savannah's ability to deliver the Project and
generate future cash flows from it would not be affected by the
Investigation's findings. As it awaits new steps in the
Investigation, Savannah will continue to progress its Project
unencumbered while remaining ready to cooperate fully with the
Portuguese authorities should the Company be required to do
so.
Actions taken by Savannah:
·
Commissioned CMS Portugal (Rui Pena, Arnaut e
Associados, RL), part of the internationally renowned law group
CMS, to conduct an independent review (the 'Independent Review') of
the Company's activities between 1 January 2017 and 31 October 2023
in relation to Operation Influencer[1].
·
Commissioned additional legal opinions (the 'Legal
Opinions') from a renowned Portuguese legal expert in
constitutional and penal law, and also from the specialist
Portuguese law firm, Gama Glória.
Main conclusions reached:
The Independent Review found no
evidence which would give rise to liability
of the Company in connection with any
irregular financial transactions by the Company. It also found no
evidence of improper offers, improper payments, or other forms of
wrongdoing by the Company in regard to the suspicions set out in
the Investigation associated with: past relations with a potential
partner, discussions on the by-pass road, royalties, or in relation
to interactions with national entities in the EIA process under
Article 16. No material legal risk was
identified related to the alleged facts and circumstances outlined
in the Investigation.
The Legal Opinions have confirmed
that, based on the findings of the Independent Review, but also on
the functioning of the Portuguese permitting process, past legal
experience, and constitutional protections, under no realistic
circumstance would the Project's execution and its expected future
cash flows be at risk from the
Investigation's findings.
The conclusions of the Independent
Review and the Legal Opinions demonstrate Savannah's solid legal
position in relation to the alleged facts and circumstances
contained in Operation Influencer. These
conclusions support Savannah's previous
statements that its business is always conducted in a fully lawful
manner, based on robust systems and controls the Company has in
place.
Other developments:
Savannah has had no further
engagement with the investigating authorities since 7 November 2023
and has continued with all its business activities.
On 21 December 2023, the PPO
announced that the Investigation was being split into three
separate investigations (by industry), with one now covering the
two lithium projects. Savannah can confirm that it has no
relationship with the other lithium project involved. Based on past
similar cases, the timeline for next steps is uncertain and likely
to be long, and a formal clearing or accusation is not expected in
the near term.
Savannah's Chief Executive Officer, Emanuel Proença
said,
"Today's announcement sets out the actions we have taken to
re-establish confidence. While the Investigation may draw on
evidence not available to the Independent Review, and although
further steps are to be expected, the conclusions of the
Independent Review and the Legal Opinions are clear and sound, and
I trust that they will reassure our stakeholders. I'll say clearly:
Savannah's legal standing is strong. The Project's Mining Lease
remains in good standing, development of the Project will continue,
and we believe it will deliver its expected results. The region and
its people will benefit from it; and Portugal will play a key role
in Europe's new lithium battery value chain.
"Operation Influencer has attracted much interest, both within
Portugal and overseas. Throughout this period our team has
shown great resolve to deal with the additional pressure and has
worked extremely hard to ensure we continue to progress the
Project. Savannah stands ready to
fully engage with the Portuguese legal authorities as and when
required. In the meantime, we will focus on rebuilding the impact
this had on the perception of Savannah and on the matters within
our control which can bring meaningful value accretion to our
Project and assure meaningful socio-economic benefits for the
region."
Further background information on
Operation Influencer, based on confirmed public information, will
be posted onto Savannah's website.
Regulatory Information
This Announcement contains inside
information for the purposes of the UK version of the market abuse
regulation (EU No. 596/2014) as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018
("UK MAR").
Savannah - Enabling Europe's energy
transition.
**ENDS**
Follow @SavannahRes on X
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Savannah Resources on LinkedIn
For further information please
visit www.savannahresources.com
or contact:
Savannah Resources PLC
Emanuel Proença, CEO
|
Tel: +44 20 7117 2489
|
SP
Angel Corporate Finance LLP (Nominated Advisor & Joint
Broker)
David Hignell/ Charlie Bouverat
(Corporate Finance)
Grant Barker/Abigail Wayne (Sales
& Broking)
|
Tel: +44 20 3470 0470
|
SCP
Resource Finance (Joint Broker)
Filipe Martins/Chris
Tonkin
|
Tel: +44 204 548 1765
|
Camarco (Financial PR)
Gordon Poole/ Emily Hall / Fergus
Young
|
Tel: +44 20 3757 4980
|
About Savannah
Savannah Resources is a mineral
resource development company and the sole owner of the Barroso
Lithium Project in northern Portugal, the largest battery grade
spodumene lithium resource outlined to date in Europe.
Through the Barroso Lithium Project
(the 'Project'), Savannah will help Portugal to play an important
role in providing a long-term, locally sourced, lithium raw
material supply for Europe's rapidly developing lithium battery
value chain. After the Environmental Licence was granted in May
2023 and the Scoping Study confirmed the economic potential of the
Project in June 2023, production is now targeted and on track to
begin in 2026. At that stage, Savannah will start producing enough
lithium for approximately half a million vehicle battery packs per
year, equal to a significant portion of the European Commission's
Critical Raw Material Act goal of a minimum 10% of European
endogenous lithium production set for 2030. Savannah is focused on
the responsible development and operation of the Barroso Lithium
Project so that its impact on the environment is minimised and the
socio-economic benefits that it can bring to all its stakeholders
are maximised.
The Company is listed and regulated
on the London Stock Exchange's Alternative Investment Market (AIM)
and the Company's ordinary shares are also available on the
Quotation Board of the Frankfurt Stock Exchange (FWB) under the
symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker
"SAV".