The CEO, Emanuel Proença, stated today that this year has been “quite eventful” for Savannah Resources, which aims to explore lithium in Covas do Barroso, Vila Real district.
After announcing in September an increase in lithium quantities, with confirmed resources at 39 million tons and potential at 100 million tons, the company has completed a capital increase operation totaling 12 million dollars, approximately 10 million euros.
“This financing is sufficient to significantly advance our work, with increased efforts by our team on the ground in Boticas, and it is also enough to acquire the Aldeia concession,” stated Emanuel Proença.
The operation represented “a value above initial expectations, with demand exceeding supply.”
The manager noted this as a “sign that investors recognize the project’s merit,” highlighting participation from Portuguese investors, as well as institutional investors from Spain and others from the mining and battery industries.
Currently, 27% of Savannah’s capital is held by Portuguese stakeholders.
Among the highlights of the operation was the increased participation in capital by the Optimize Portugal Golden Opportunities Fund, which now holds more than a 5% stake, becoming the third largest national investor.
Regarding the Aldeia project, the three blocks of this mining concession are located next to the 100% Savannah-owned exploration concession.
Negotiations with the owners had been ongoing, and the deal is now finalized, following the confirmed presence of lithium, which can be added to the feldspar already explored in that concession.
In September, an agreement was published in the Diário da República (DR) between the Directorate-General for Energy and Geology (DGEG) and Aldeia S.A. for the exploration of quartz, feldspar, and lithium—under the Canedo-Covas name—in an area of 274 hectares located in Boticas and Ribeira de Pena.
The contract is dated December 4, 2024, with a 25-year term, extendable.
“These are two existing projects that can work better together,” emphasized Emanuel Proença, considering they can “bring more value to the local economy” since the mineral can undergo initial processing at the planned factory, generating more jobs.
According to the CEO, all of this supports the idea that work in this territory could continue “for many good decades, supporting an employment base for one or potentially several generations.”
The construction phase at the Barroso mine is expected to commence by the end of 2026, with production starting in 2028.
A factory, roads, water tanks, offices, laboratories, and a Wastewater Treatment Station (ETAR) will be built.
“All these elements will be constructed more or less in parallel over 18 months, leading to production,” he said.
Meanwhile, geotechnical work will occur on-site, for which the company has requested a second administrative easement, awaiting government approval.
“This runs parallel with other engineering specialties, the mining plan, the Environmental Compliance Report of the Execution Project (RECAPE), among various other work components that afterward support project finance, financing structuring, and the start of construction,” he added.
The open-pit lithium mine received a conditional Environmental Impact Statement (DIA) in 2023 and has faced opposition from locals, mayors, and environmentalists.
