Druces’ Capital Markets team has advised Savannah Resources Plc, the European lithium development company, in connection with the exit from the Consortium Agreement with Rio Tinto with immediate effect. This follows the completion of a strategic review carried out by Savannah on its Mozambique mineral sands operations, and Savannah will exit its remaining assets in Mozambique. Rio Tinto paid US$9.5m cash primarily to Savannah’s wholly owned UK subsidiary in respect of the termination of the Consortium Agreement and the transfer of the in-country Savannah team to Rio Tinto.
The Capital Markets team consisted of Dominic Traynor, Jack Dervyn and Mark Lamph, and Dominic commented: “Having advised Savannah Resources since it listed in 2010 including initially negotiating the JV Agreement with Rio Tinto, we are pleased to have worked with them to conclude this chapter of their corporate journey. As ever thanks to the team for their sterling work above and beyond the call of duty. It was a pleasure to work with Savannah, as always, and we look forward to continue advising them as they focus on their lithium strategy.”
Michael McGarty, CFO of Savannah, observed: “The Druces team led by Jack Dervyn and Dominic Traynor did a great job of facilitating an effective and efficient conclusion to bring our joint venture with mining major, Rio Tinto, to a conclusion. Furthermore, they offered commercial insights as well as expert legal input, and were very flexible in the times that they provided assistance to recognise the parties’ varying time-zones.”
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