Savannah Resources (AIM:SAV) said it can restart fieldwork immediately at its Barroso Lithium Project in northern Portugal after the Portuguese State issued a "Reasoned Resolution" overturning a precautionary measure that had suspended a temporary land easement order.
The AIM-listed lithium developer said the injunction, filed on 9 June by the Covas do Barroso Baldios at the Administrative and Fiscal Court of Mirandela, has been neutralised by the State's resolution, which removes the suspension on the easement order with immediate effect.
The easement, approved by the Portuguese State in May, grants Savannah temporary access to land it does not own to complete the last phase of fieldwork required before construction can begin.
In its resolution, the State cited the project's designation as a Strategic Project under the European Critical Raw Materials Act, its role in Portugal's foreign investment ambitions, and Savannah's track record of completing the 2025 easement "in strict compliance" with all regulatory requirements and without significant damage to affected landowners.
The State also warned that suspending the easement risked "serious and difficult-to-remedy harm to the public interest" by delaying a project tied to Europe's critical raw materials supply targets.
Savannah will now reinitiate its field programme and complete the work as planned.
Another vote of confidence
In London, stockbroker SP Angel repeated a Buy rating with an 18.5p price target, as analysts highlighted that the reinstatement provides reaffirmation of state support for the project.
The broker noted that this is the second time a local challenge has been resolved in the project's favour, following a similar dispute in early 2025 that was settled within two weeks.
SP Angel added that the state explicitly cited Savannah's strict compliance with the previous easement order as a factor in its ruling, and that authorities warned suspension would cause "serious and difficult-to-remedy harm to the public interest," reinforcing Barroso's national and European strategic significance; the definitive feasibility study remains on track for release in July.
SP Angel points to the RECAPE environmental submission, targeted for the fourth quarter of 2026, as the next pivotal re-rating event, with a 50-business-day statutory review expected to place environmental licence completion in the first quarter of 2027.
