AIM-listed Savannah Resources has increased its interest in Matilda Minerals Limitada to 100% by way of the acquisition of a further 20% equity interest in the entity.

Matilda holds the prospecting rights in the 180 km2 Jangamo heavy mineral sands tenement in Mozambique, which is part of the Mutamba heavy minerals sands project and subject to the company’s previously announced consortium agreement with Rio Tinto).

This 20% interest has been secured in consideration of A$100 000, payable by issue of 1 194 074 ordinary shares of 1p in Savannah Resources at an issue price of 5.056p.

As part of this acquisition, Savannah Resources has also agreed with the vendors of Matilda to cancel the deferred consideration terms for consideration of A$50 000, payable by issue of 597 037 ordinary shares at an issue price of 5.056p.

“We’re pleased to have reached agreement with the vendors of Matilda to eliminate the deferred consideration obligations from the 2013 acquisition and also to finalise the purchase of the 20% not already owned by Savannah,” says Savannah Resources CEO David Archer.

“I am pleased to confirm that this transaction has been approved by the Mozambique Ministry of Mineral Resources, which has been very supportive of our activities in country.”

Issue of share options

The company has also granted options over 500 000 ordinary shares which are being issued to a member of the company’s management in recognition of both his significant contribution towards progressing Savannah’s portfolio of development projects in 2017 and also as part of the company’s policy to retain talented personnel.

Regulatory information

Of the consideration shares, 1 552 296 will be issued to John Paul O’Donoghue: Savannah Resources’ African Operations General Manager and co-founder of Matilda. Following the issue of the consideration shares, O’Donoghue will be the beneficial owner of 3 137 878 ordinary shares in Savannah, representing 0.55% of the company’s total voting rights.