20.06.2024 08:00:05 - dpa-AFX: GNW-Adhoc: AMG Critical Materials Acquires a Strategic Stake in Savannah Resources
Amsterdam, 20 June 2024 (Regulated Information) --- AMG Critical Materials N.V
subsidiary ("AMG", EURONEXT AMSTERDAM: "AMG") AMG Lithium B.V., AMG's wholly
owned subsidiary, is pleased to announce a capital investment of GBP 16 million
(approximately USD 20 million) in Savannah Resources Plc ("Savannah"), the
developer of the Barroso Lithium Project (the "Project") in Portugal, Europe's
largest spodumene lithium deposit. AMG's capital investment yields a 15.77%
ownership stake, making AMG the largest shareholder of record.
The terms of the agreement include a seat on Savannah's Board of Directors, a 5-
year offtake of the Project at 45ktpa of spodumene (or 225,000 DMT in the
aggregate), with the opportunity to increase the offtake to 90ktpa of spodumene
and extend to 10 years (900,000 DMT in the aggregate) by providing Savannah with
an acceptable "full project financing solution" for the Project's development.
Both parties agreed also to cooperate in evaluating expanding into Lithium
downstream activities in Portugal and Spain.
Through this agreement, Savannah and AMG will be contributing towards the
domestic extraction and processing targets for lithium raw material set forth in
the 2023 European Critical Raw Materials Act.
"We are excited to partner with Savannah on its development of the Barroso
Lithium Project, Europe's largest spodumene project. This partnership with
Savannah is an additional step in expanding our lithium resource portfolio."
-Dr. Heinz Schimmelbusch, Chairman and CEO of AMG.
"We are delighted to announce this partnership with AMG, which represents
another huge de-risking step for the Barroso Lithium Project. With this
investment, Savannah is now fully funded to complete all its current work
streams."
-Emanuel Proença, CEO of Savannah
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch
Financial Markets Supervision Act (Wet op het financieel toezicht).
Regulatory Information
This Announcement contains inside information for the purposes of the UK version
of the market abuse regulation (EU No. 596/2014) as it forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK
MAR").
About Savannah
Savannah Resources is a mineral resource development company and the sole owner
of the Barroso Lithium Project in northern Portugal, the largest battery grade
spodumene lithium resource outlined to date in Europe.
Through the Barroso Lithium Project (the 'Project'), Savannah will help Portugal
to play an important role in providing a long-term, locally sourced, lithium raw
material supply for Europe's rapidly developing lithium battery value chain.
After the Environmental Licence was granted in May 2023 and the Scoping Study
confirmed the economic potential of the Project in June 2023, production is now
targeted and on track to begin in 2026. At that stage, Savannah will start
producing enough lithium (contained in c.190,000tpa of spodumene concentrate)
for approximately half a million vehicle battery packs per year, equal to a
significant portion of the European Commission's Critical Raw Material Act goal
of a minimum 10% of European endogenous lithium production set for 2030.
Savannah is focused on the responsible development and operation of the Barroso
Lithium Project so that its impact on the environment is minimised and the
socio-economic benefits that it can bring to all its stakeholders are maximised.
The Company is listed and regulated on the London Stock Exchange's Alternative
Investment Market (AIM) and the Company's ordinary shares are also available on
the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB:
SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".
About AMG
AMG's mission is to provide critical materials and related process technologies
to advance a less carbon-intensive world. To this end, AMG is focused on the
production and development of energy storage materials such as lithium,
vanadium, and tantalum. In addition, AMG's products include highly engineered
systems to reduce CO(2) in aerospace engines, as well as critical materials
addressing CO(2) reduction in a variety of other end use markets.
AMG's Lithium segment spans the lithium value chain, reducing the CO(2)
footprint of both suppliers and customers. AMG's Vanadium segment is the world's
market leader in recycling vanadium from oil refining residues, spanning the
Company's vanadium, titanium, and chrome businesses. AMG's Technologies segment
is the established world market leader in advanced metallurgy and provides
equipment engineering to the aerospace engine sector globally. It serves as the
engineering home for the Company's fast-growing LIVA batteries, and spans AMG's
mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production
facilities in Germany, the United Kingdom, France, the United States, China,
Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer
service offices in Japan (www.amg-nv.com (http://www.amg-nv.com)).
For further information, please contact:
Savannah Resources PLC
Emanuel Proença, CEO
Tel: +44 20 7117 2489
AMG Critical Materials N.V.
Michele Fischer
Senior Vice President of Communications
Tel: +1 610 975 4979
mfischer@amg-nv.com (mailto:mfischer@amg-nv.com)
Disclaimer
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"forward looking." Forward looking statements include statements concerning
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future events, future revenues or performance, capital expenditures, financing
needs, plans and intentions relating to acquisitions, AMG's competitive
strengths and weaknesses, plans or goals relating to forecasted production,
reserves, financial position and future operations and development, AMG's
business strategy and the trends AMG anticipates in the industries and the
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is not historical information. When used in this press release, the words
"expects," "believes," "anticipates," "plans," "may," "will," "should," and
similar expressions, and the negatives thereof, are intended to identify forward
looking statements. By their very nature, forward-looking statements involve
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regard thereto or any change in events, conditions, or circumstances on which
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