Savannah Resources (AIM:SAV) has completed a placing and subscription raising at least $36.0 million (£26.9 million) before expenses, after strong demand left the accelerated bookbuild significantly oversubscribed.
The AIM-listed company is developing the Barroso Lithium Project in Portugal, designated a "Strategic Project" under the European Critical Raw Materials Act and described as Europe's largest spodumene lithium deposit.
The placing raised $23.3 million (£17.5 million) through 317.54 million new shares at 5.5p each, with a further $12.7 million (£9.5 million) available through subscription for up to 172.1 million shares at the same price.
SP Angel, Canaccord, Alantra and CaixaBank acted as joint global coordinators on the bookbuild.
The final subscription allocation depends on the outcome of a retail offer, open to individual investors until 5:00pm on 24 September, which may see some subscribers' allocations adjusted to preserve their existing percentage holdings.
Substantial shareholders AMG Lithium, Al Marjan, Pluris Investments and Telmory each participated in the subscription, alongside senior management and staff, who subscribed for roughly $47,000 (£35,000) worth of shares.
Chief executive Emanuel Proença said the funds, combined with existing cash reserves, would let the company progress toward a final investment decision in 2027 while financing "long lead item orders, initial groundworks, Project Finance fees and key personnel hires."
Proceeds are earmarked across project development, general administration including a planned doubling of headcount to roughly 80 staff, project finance completion, environmental licensing, geotechnical work, land rights and working capital contingency.
Savannah expects to secure a second offtake partner, submit its environmental licence application to Portugal's regulator, and obtain conditional project finance offers before year-end.