Savannah Resources Plc, the developer of the Barroso Lithium Project in Portugal, a ‘Strategic Project’ under the European Critical Raw Materials Act and Europe’s largest spodumene lithium deposit (the ‘Project’), was delighted to join with other recipients of State grants yesterday at the official signing ceremony at the Port Authority in Sines, southern Portugal. Savannah’s attendance at the ceremony follows the award to the Company of a non-reimbursable grant (the ‘Grant’) of up to approximately €110 million (approximately US$128 million) from the Portuguese State and supported by national funds under the European Commission Temporary Crisis and Transition Framework, as announced on 9 January 2026.
Reflecting the significance of these grant awards and the underlying investments being made by the companies involved, which amount to over €3 billion , the ceremony took place in the presence of Portugal’s Prime Minister Luís Montenegro, Minister of Economy and Territorial Cohesion Castro Almeida, Secretary of State for the Economy João Rui Ferreira, and the President of AICEP, Madalena Oliveira e Silva.
The Grant signing ceremony took place in the presence of Portugal’s Prime Minister Luís Montenegro (fifth from left), Minister of Economy and Territorial Cohesion Castro Almeida (4th from left), Secretary of State for the Economy João Rui Ferreira (fifth from right), and the President of AICEP Madalena Oliveira e Silva (second from left). CEO, Emanuel Proença (second from right) represented Savannah alongside officers from the other grant recipient companies.
Savannah was one of six companies invited to be part of the public signing ceremony of the investments contracted with AICEP. Of the six companies selected, four (Savannah Resources; Lifthium; Topsoe Battery, and CALB) represent investments within the lithium battery value chain in Portugal which, in addition to Savannah’s own Project, comprise a hydroxide finishing refinery and large manufacturing plants for cathode active materials and batteries. Savannah is the only recipient within the lithium mining sector, and the only company with a project in the interior of the country, where long term economic growth catalysts are required to create local employment.
During the ceremony, Prime Minister Luís Montenegro stressed the importance of “creating value chains in critical sectors”, calling the lithium value chain “fundamental for the green transition and for Europe’s autonomy”. The Prime Minister added, “We want to be less and less dependent, and it is with projects like these that we can achieve this goal, from extraction – which must be done with the least possible environmental impact – to industrialisation in the production of batteries that will be essential for the automotive sector in Portugal.”
The President of AICEP, Madalena Oliveira e Silva, expressed her gratitude to the investing companies for “choosing Portugal for their industrial investments”, stressing that these projects are “[…] a vote of confidence in the country, reflecting the positive conditions that Portugal has been able to create” and adding that, “These export investments are structuring for the national economy due to their ability to create value.”
Savannah Resources CEO, Emanuel Proença said, “It gives us great pride to be part of this small group of industrial projects that are recognised today for the potential they represent for the country. We have been saying that our Project will be transformative, first of all for our region of Trás-os-Montes, through job creation and local economic development, but also for the country as it represents the origin of the lithium battery value chain, attracting other projects further downstream, and, of course, for Europe for being able to contribute decisively to energy independence and to the green transition that will mark the coming years and decades.”
Background information & next steps
Grant details: The Grant is executed through an investment contract entered into between AICEP and Savannah’s Portuguese subsidiary, Savannah Lithium Unipessoal Lda. Through the award Savannah can receive up to a maximum total value of €109.67 million (US$128.31 million) in the form of Non-Refundable grant funding divided into two parts as follows:
o An amount of up to €82.25 million (US$96.23 million) equivalent to 75% of the total, granted as consideration for the execution of the operation (CAPEX); and
o An amount of up to €27.42 million (US$32.08 million) equivalent to 25% of the total, awarded as a contractual performance bonus sometime between 2031 and 2042.
Next steps: Following the signing of the investment contract, Savannah will work with AICEP to complete its execution and the fulfilment of all contractual and legal obligations, notably regarding the Grant’s compatibility with any future Project Financing and/or other potential funding option to complement the development of the Project.
Conditions precedent and execution risk: Savannah notes that while this Grant represents a significant milestone, the Project remains subject to permitting, financing, construction, and operational risks typical of mining developments. Shareholders should note that the timing and quantum of Grant receipts are contingent on meeting all contractual conditions. Should Savannah or the Portuguese State not comply with the conditions precedent before the end of the year, the contract would be void.
Regulatory Information
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
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For further information please visit www.savannahresources.com or contact:
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Savannah Resources PLC Emanuel Proença, CEO |
Tel: +44 20 7117 2489 |
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SP Angel Corporate Finance LLP (Nominated Advisor & Broker) David Hignell/ Charlie Bouverat (Corporate Finance) Grant Barker/Abigail Wayne (Sales & Broking) |
Tel: +44 20 3470 0470 |
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Canaccord Genuity Limited (Joint Broker) James Asensio / Charlie Hammond (Corporate Broking) Ben Knott (Sales) |
Tel: +44 20 7523 8000 |
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Portugal Media Relations Savannah Resources: Antonio Neves Costa, Communications Manager |
Tel: +351 962 678 912 |
About Savannah
Savannah Resources is a mineral resource development company and the sole owner of the Barroso Lithium Project (the ‘Project’) in northern Portugal. The Project is the largest battery grade spodumene lithium resource outlined to date in Europe, was classified as a ‘Strategic Project’ by the European Commission under the Critical Raw Materials Act in March 2025 and was approved for a Portuguese State development Grant of up to €110m in January 2026.
Through 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 lithium battery value chain. Once in operation the Project will produce enough lithium (contained in c.190,000tpa of spodumene concentrate) for approximately half a million vehicle battery packs per year and hence make a significant contribution towards the European Commission’s Critical Raw Material Act goal of a minimum 10% of European endogenous lithium production from 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 AIM Market of the London Stock Exchange and trades under the ticker “SAV”.
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