European mining and exploration company Savannah Resources is to leave its operations in Mozambique and the consortium it had with Rio Tinto, to focus on lithium exploration in Portugal, it announced in a statement.
“The consortium agreement held with Rio Tinto – originally announced on 11 October 2016 – will be amicably terminated with immediate effect” and “Savannah will also withdraw its remaining assets from Mozambique,” the document reads.
The decision was made after the company “completed the strategic review of its mineral sands operations in Mozambique.”
Rio Tinto paid US$9.5 million (€8.37 million) in cash to Savannah’s UK subsidiary “for termination of the consortium agreement and the transfer of the team” to the partner company, which now assumes “full responsibility for the Mutamba project.”
“By focusing on the development and marketing of the Barroso lithium project,” in Portugal, “Mutamba became secondary to Savannah and the exit was agreed with the partner, Rio Tinto,” said David Archer, chief executive of Savannah, in the statement.
He added that “the transaction allows us to focus management resources and increased cash reserves exclusively on lithium in the Iberian Peninsula.
