Plans for a lithium mine in Portugal have taken a step forward after developer Savannah Resources signed heads of agreement with Galp Energia, the Portuguese energy group.
Galp intends to secure a 10% shareholding in Savannah’s Portuguese subsidiaries , which own the Mina do Barroso lithium project in northern Portugal. Galp paid US$6.4M in cash to be used to further Savannah’s progress towards its Definitive Feasibility Study, subject to due diligence and completion of definitive agreements relating to the partnership
Galp and Savannah are set to evaluate, under exclusive terms, an offtake agreement for up to 100,000tpa of lithium concentrate from Mina do Barroso – 50% of annual production. Savannah said the agreement represents “a significant step in commercialising Mina do Barroso and will be an important factor in securing financing for the construction of the project.”
David Archer, Savannah’s chief executive, said: “We are delighted to announce Galp as a potential investor and future strategic partner in our Portuguese project. We believe Mina do Barroso’s low carbon footprint lithium concentrate will provide a key foundation for Europe’s energy transition to electric mobility and we are delighted to be joined by Galp on this journey. They are one of the leading European companies in the energy and renewables space with a commitment to the energy transition and have a wealth of experience in developing large scale projects such as this. Their knowledge and experience will be invaluable to Savannah as we further progress the Project forward in a responsible and sustainable way into development.”
Archer noted that Galp had been named by the Climate Disclosure Project as one of the energy companies that most effectively enacts climate change-related best practices.