Savannah Resources shares rocket on Rio Tinto joint venture in Mozambique
Industrial metals group Savannah Resources doubled in market value on Monday after the AIM company entered into a joint venture agreement with mining giant Rio Tinto in Mozambique.
FTSE 100
8,118.68
12:10 26/04/24
FTSE 350
4,459.82
12:10 26/04/24
FTSE AIM All-Share
755.47
12:10 26/04/24
FTSE All-Share
4,413.26
12:10 26/04/24
Mining
10,562.56
11:59 26/04/24
Rio Tinto
5,479.00p
12:10 26/04/24
Savannah Resources
3.29p
11:24 26/04/24
Savannah’s subsidiary AME East Africa has struck a deal with Rio to combine its adjacent Mutamba, Dongane and Jangamo heavy mineral sands prospects with Rio’s Chilubane project.
The JV combines Savannah’s estimated 65m tonnes of inferred mineral resources with Rio’s previously-declared exploration target of 7-12bn tonnes.
Savannah will be operator of the JV and may earn up to a 51% stake in the combined Mutamba/Jangamo project, while Rio will enter into offtake sales contracts for the purchase of 100% of products any mine may produce.
Savannah chief executive David Archer said the “amalgamation of the Mutamba, Dongane and Jangamo Projects makes enormous sense as it combines three areas which are effectively part of the same, continuous mineralisation trend”.
As part of the deal, Savannah will buy the remaining 20% of Matilda Minerals, owner of the Jangamo prospect, it does not already own.
By 08:16, the stock was up 100% at 4.15p, giving Savannah a market capitalisation of around £9m.