Commodities developer Savannah Resources has said it will become the sole owner of Portugal’s Mina do Barroso lithium project in Portugal through an all-share offer valued at around US$11.9 million.
The UK-based developer, which already owns 75% of the project, said full ownership would “provide greater exposure of Europe’s most significant spodumene lithium deposit” as it’s developed and commercialised.
Savannah’s CEO David Archer (pictured) said the move was being made at a time when “legislators and battery end users in the region have come to appreciate the need for Europe to have domestic sources of battery raw materials as the region seeks to reduce emissions from the transport sector via the transition to electric vehicles (EVs)”.
The stake increase will also provide “welcome simplification, clarity and valuable optionality” as Savannah negotiates lithium and co-product off take agreements, along with the project’s proposed financing, the company said.
BEST Battery Briefing reported last October that Portugal’s government was looking to offer licences for the exploration of lithium in the country in a bid to grab a share of the lucrative battery materials supply market for EVs.