Appointment of Project Finance Advisor

In brief · summary, not quotable

Savannah Resources appoints Cutfield Freeman as Project Finance Advisor for Barroso Lithium Project funding strategy.

Potential guarantee on loan from KfW and Euler Hermes AG USD 270 million
CF&Co transactions closed since 2000 over US$22bn

Full announcement

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Savannah Resources Plc, the developer of the Barroso Lithium Project (the 'Project') in Portugal, a 'Strategic Project' under the European Critical Raw Materials Act and Europe's largest spodumene lithium deposit is pleased to announce the appointment of Cutfield Freeman & Company Limited ('CF&Co') as its Project Finance Advisor ('PF Advisor'). CF&Co will assist in structuring and leading the next phase of the Company's funding strategy.

Highlights:

Increased Investor Interest: Financial interest in the Project has grown significantly following recent progress in engineering, resource upgrades, its designation as a Strategic Project by the European Commission earlier this year and the investments made in Savannah by its significant shareholders and institutional investors.
PF Advisor Selection: To define the optimal financing structure and initiate engagement with potential funding partners, Savannah launched a competitive tender process in April. A set of selected parties with extensive sector knowledge were invited to submit detailed proposals.
Appointment of CF&Co: Following a rigorous evaluation of the proposals, Savannah has selected CF&Co as its PF Advisor. CF&Co brings deep expertise in the lithium and mining sectors and a strong track record of advising on relevant transactions in the industry.
PF key to development schedule: By making this appointment, Savannah is maintaining its commitment to the rapid development of the Project so that the Company is well placed to leverage the favourable lithium market dynamics which are expected in the coming years.
Next Steps: CF&Co will support Savannah on the development and implementation of Savannah's funding strategy, which already includes previously reported work options such as the offtake heads of terms agreement with AMG and a non-binding LoI from the KfW and Euler Hermes AG, the multilateral and ECA acting for the German Government, confirming the potential for a guarantee on a loan up to USD 270 million (see RNS announcements dated 20 June 2024 and 3 December 2024). The Company will provide further updates as appropriate.

Emanuel Proença, CEO of Savannah Resources, commented: "The appointment of Cutfield Freeman & Company marks another important milestone as we progress towards the development of the Barroso Lithium Project. Their proven track record and sector knowledge will be invaluable as we advance our funding strategy, and continue to build a competitive project that is set to come online in time to support Europe's critical battery, electric vehicle and renewable sectors."

Tony Butler, Managing Director of Cutfield Freeman, commented: "We are delighted to be appointed by Savannah Resources to advise on the project financing for the Barroso Lithium Project. As a strategically important asset, development of the Project is key for securing a sustainable lithium supply chain for Europe. We look forward to working with management to deliver the right financing solution for the project."

CF&Co is an independent corporate finance advisor with offices in London, Toronto, Hong Kong and Perth, providing independent advice to companies in the mining and metals sectors. CF&Co advises on all aspects of corporate, project and offtake-related finance, mergers and acquisitions and joint ventures. Since it was founded in 2000, CF&Co has closed over US$22bn of transactions.