Savannah Resources (AIM:SAV), the developer of Europe's largest spodumene lithium deposit in Portugal's Barroso region, has signed ten memorandums of understanding with local community organisations and launched a business engagement programme as it advances toward construction.
The first three MoUs confirmed are with local recreational associations representing approximately 250 members in the municipalities of Boticas and Ribeira de Pena, with further agreements to be disclosed in due course.
Under the MoU terms, the associations will sit on the Project's Local Advisory and Monitoring Committee and help govern the Barroso Lithium Foundation, which is expected to distribute €500,000 annually to regional development initiatives once the mine is operational.
On the business side, Savannah hosted a session with around 25 local business representatives to identify supply chain opportunities across transport, services and logistics; a group of local businesspeople have since confirmed plans to form a cooperative to capture regional economic benefits from the project.
The Portuguese authorities have also opened a public consultation on a proposed 17-kilometre bypass road around Boticas, with the process running until 17 July.
CEO Emanuel Proença said the next critical milestone is completion of the Definitive Feasibility Study, which "will then unlock further significant news flow before the end of the year."
An environmental impact declaration for the bypass road is expected in early in the fourth quarter.
