Savannah Resources Secures €110m Grant from Portuguese Government for Barroso Lithium Project
Why we think this is very good
The approval of a €110 million non-reimbursable grant from the Portuguese government for Savannah Resources' Barroso Lithium Project is a highly positive development. This significant financial contribution towards the project's CAPEX should improve the project's economics and reduce Savannah's funding requirements. The grant represents a transformational funding event that meets the criteria for a 'VERY_GOOD' rating.
Key Points
- Portuguese government awards Savannah Resources a non-reimbursable grant of up to €110 million for the Barroso Lithium Project
- Grant to be used for 75% of the project's initial capital expenditure and 25% for performance milestones during operations
- Grant represents a significant financial contribution and demonstrates the Portuguese government's strong support for the strategic project
Summary
Savannah Resources has been awarded a non-reimbursable grant of up to €110 million (approximately US$128 million) from the Portuguese government for the development of the Barroso Lithium Project. The grant represents a significant financial contribution towards the project's initial capital expenditure (75% of the total) and performance milestones during the operational phase (25% of the total). This grant demonstrates the strong support the project is receiving from the Portuguese government and its recognition as a strategic asset of national and European importance. The funding will help Savannah progress the Barroso Lithium Project, which is the largest battery-grade spodumene lithium resource outlined in Europe to date.