Savannah raises €31.3m for Barroso lithium project

Savannah Resources, the owner of Portugal’s Barroso lithium project, said on Wednesday it had completed a €31.3 million capital increase through institutional tranches, in a funding round that supports the next development phase of one of the country’s most closely watched mining projects.

The company issued about 490 million new shares at 5.5 pence each. Savannah said this was its largest capital increase to date and that it drew strong backing from existing shareholders, including its five largest shareholder groups. Before the deal, those included Pluris Investments, owned by businessman Mário Ferreira, with 10.17%, Telmory, linked to Lusiaves founder Avelino da Mota Gaspar, with 10%, and Optimize Investment Partners, managed by Pedro Lino, with 6.27%.

Savannah said the fundraising also showed “strong interest from Portuguese investors”, who now account for about 30% of its shareholder base. The company also reported demand from Spanish, British, Swiss and Nordic investors. CFO Henrique Freire said the operation was successful both in the amount raised and in the diversity of investors.

According to the company, the proceeds will help fund the submission of the project’s environmental compliance report, engineering work, procurement of key equipment, talks with financial institutions and offtake agreements, with the aim of starting construction in the first half of 2027. Savannah also said it plans to strengthen its local team with 40 new hires and use part of the funds to support potential costs linked to a future dual listing outside the UK.

Originally published at Eco.pt