Savannah Resources / ASMAA
Barroso lithium mine
Savannah Resources, which explores lithium from the Barroso mine in Boticas, is eligible for a German investment program and has already obtained a letter of interest from the credit agency.
It is located 145 kilometers from Porto, and is, according to the company that operates it, Savannah Resources “the most significant hard rock lithium spodumene resource in Western Europe“. Now, the Barroso mine can receive very significant external help.
Euler Hermes, a credit agency that acts on behalf of the German Government, sent a (non-binding) letter of interest to Savannah Resources, the company tells .
This possible financial support would guarantee the shipment of lithium to Germany through an agreement between Savannah and AMG (the largest shareholder of the Boticas lithium company, which holds 15.77% of it), which would guarantee the supply of 90 thousand tons per year of spodumene concentrate, over 10 years.
Savannah’s executive president, Emanuel Proença, confessed to Expresso that “this endorsement of the project by one of the most credible credit entities in the world is a fundamental step towards building a complete solution project financing”.
“The possibility of obtaining a substantial part of the overall project financing under this scheme German Government loan guarantee makes project debt financing more attractive for financiers and offers the opportunity for lower costs and interest for our shareholders”, said Emanuel Proença.
According to , the company expected, at the end of November, that the project would produce around 200,000 kt/year of spodumene concentrate. This volume would then make Savannah Resources an important element of the lithium value chain.
