Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

UK-based Savannah Resources Plc has decided to divest stakes of its copper projects in Oman to Australian mine developer Force Commodities, the company said in a statement. However, it will retain exposure to the projects’ economic success.


Savannah will transfer 100pc of ownership, 65pc in Block 5, and 51pc (earning up to 65pc) in Block 4, an area of over 1,000sqkm in the copper-rich Semail Ophiolite region. The area holds clusters of moderate to high-grade copper deposits with gold and other metallurgical ores, as per reports.


As per the agreement, Force will issue 50mn shares to Savannah and has agreed to the payment of AUD3.5mn ($2.5mn) of a loan, funded via cash flow generated from production on Block 5 of the project. Savannah will also receive a 1pc net smelter royalty on metal sales, the company said. 


Savannah also has other projects in Portugal and Mozambique, while Force is a base metals exploration and development company based in Perth, Western Australia.


($1 = AUD1.36909)




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