Shares of Savannah Resources fell 7.2% to 5.40p as roughly 547 million new shares hit AIM trading today, the final step in a £30.1 million (US$40.2 million) fundraising that dramatically expands the company's share count while bankrolling its flagship lithium project in Portugal.
• More Than Half a Billion Shares Flood the Register
Savannah completed the fundraising through a placing, subscription, and retail offer, issuing 547,065,215 new ordinary shares at 5.5 pence each.
Before the deal, Savannah had approximately 2.57 billion shares outstanding — meaning the new issuance inflates the share count by roughly 21% in a single stroke. That kind of dilution — existing shareholders now own a smaller slice of the same company — explains much of today's selling pressure as the freshly issued stock begins trading.
• Big Backers Stepped In, Signaling Confidence — or Self-Protection
Substantial shareholders AMG Lithium, Al Marjan, Pluris Investments, and Telmory all increased their stakes , and the company's chair, Rick Anthon, also participated . The deal was described as significantly oversubscribed. That insiders bought alongside institutions is a positive signal, but it also means major holders were defending their percentage ownership against the very dilution they approved.
• The Money Buys Time Toward a Final Build Decision
Combined with existing cash, Savannah now holds over US$53 million, strengthening its position for construction commencement at Barroso next year.
A final investment decision is planned for early 2027, with first concentrate production targeted for late 2028.
Proceeds will fund long-lead equipment, permitting, drilling, land rights, and community initiatives. The company still generates zero revenue; operating cash flow over the past twelve months was negative £3.9 million .
• Strategic Backing Is Real, But So Are the Risks Ahead
Barroso was classified as a Strategic Project under the EU Critical Raw Materials Act and received approval for a Portuguese state grant of up to €110 million.
The deposit holds a reserve of 20 million tonnes at 0.99% lithium oxide . Yet the project has faced opposition from local communities and environmental groups concerned about impacts on the World Heritage agricultural region . With construction still years from revenue, today's share-price drop is a reminder that dilution is the cost of keeping a pre-revenue mine alive — and shareholders are footing the bill right now.