LONDON (ShareCast) - (Sharecast News) - Savannah Resources said on Thursday that progress continued across multiple workstreams at its Barroso lithium project in Portugal, though the delivery of its definitive feasibility study had been delayed into the first half of 2026 as final government approval for a second land easement remained outstanding.
The AIM-traded company said all technical requirements for the easement had been met but the approval process, expected over the summer, would now conclude after Portugal's municipal elections in October.

As a result, first production had shifted from late 2027 to 2028.

Savannah said it would provide a more detailed timeline once approval is granted.

Resource-related drilling for the feasibility study was completed in July, bringing the total drilled since 2017 to more than 50,000 metres.

Updated JORC resource estimates for the Grandão, Pinheiro and Reservatório orebodies were expected later in the month, with tonnage increases anticipated at Pinheiro and Reservatório.

Infrastructure planning also advanced, with revisions agreed to the design of a 16 kilometre bypass road for resubmission into the environmental impact assessment in October, and progress on internal haul roads and high-voltage power connections.

Work also continued on environmental licensing, mine scheduling, metallurgical testwork and other feasibility-related studies.

"Savannah has advanced key workstreams over the summer, ensuring continued momentum towards production," said chief executive Emanuel Proença.

"These efforts will deliver a strong flow of updates in the months ahead, starting with new JORC Resource estimates and Exploration Targets expected later this month."

He added that while the easement process had extended the timeline, "the reasons are clear and temporary" and the company remained confident of resolution.

Savannah said support from Portugal's trade and investment agency AICEP, following the project's designation as a European Commission "Strategic Project", was expected to streamline administrative processes and accelerate development.

Meanwhile, lithium market conditions had improved, with spodumene prices quoted around $1,000 per tonne in August, up more than 60% since May.

The company said it was also working with Cutfield Freeman & Company as project finance adviser, with funding options including an offtake agreement with AMG Critical Materials and the potential for a German government-backed loan guarantee of up to $270m.

At 1326 BST, Savannah Resources shares were down 7% at 3.86p.

Reporting by Josh White for Sharecast.com.

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