LONDON (ShareCast) - (Sharecast News) - Lithium-focussed resource developer Savannah said on Friday that its wholly-owned subsidiary Savannah Lithium has been joined as the counter-interested party in litigation brought by the Parish of Covas do Barroso in Portugal.
The AIM-traded firm said the parish had brought the litigation as plaintiff in the Mirandela Fiscal and Administrative Court, against the Republic of Portugal and the Ministry of Economy as defendants.

It said the litigation was seeking to nullify certain administrative actions by the defendants in June 2016, including the addition of lithium to, and the expansion in the area of, the C-100 Mining Lease.

The C-100 Mining Lease, which contains the Barroso Lithium Project, is fully granted, has a term of 30 years to 2036, and remains in "good standing", Savannah said.

"The advice from Savannah's lawyers is that the claim is without foundation and will be challenged by Savannah as the counter-interested party alongside exploring all potential options, including making a claim for damages against the plaintiff," the board said in its statement.

"The litigation neither impacts the Barroso Lithium Project's activities nor the current environmental impact assessment process which is moving to a conclusion.

"Savannah will make further announcements regarding the litigation as appropriate."

At 1339 GMT, shares in Savannah Resources were down 13.24% at 4.41p.

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