On a day of market optimism one of the day’s biggest risers is - perhaps inevitably - a mining minnow.
Aim-listed Savannah Resources has jumped nearly 75% to 3.6p after unveiling a joint venture with Rio Tinto to develop a large-scale mineral sands mining project in Mozambique. Savannah will combine its Jangamo tenement with Rio’s Mutamba deposit and operate the joint venture. It can earn up to 51% of the combined project with Rio providing all its existing camp, facilities and associated equipment which will help accelerate development, and will enter into an offtake sales agreement for 100% of the production from any mine that may be developed.
Analysts at Investec said:
A win-win for both parties as Savannah gets greater scale (and assumedly some financial backing) and Rio gets Savannah to advance a project that will be way off its list of priorities.
