Savannah Resources PLC (LON:SAV) has said the Portuguese Directorate General for Energy and Geology (DGEG) has rejected six of a total of nine exploration licence applications in northern Portugal made by Savannah's subsidiary, Slipstream Resources Portugal LDA.
In a statement released after the market close on Wednesday, the AIM-quoted resource development company pointed out that the applications were pending at the time that Savannah acquired its shareholding in Slipstream in May 2017.
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The group said the rejected exploration licence applications are entirely separate to the company's flagship Mina do Barroso Lithium Project, which has a 30-year granted Mining Lease and continues to advance at pace with the Feasibility Study on track for completion towards the end first-quarter of 2019.
It added that the six rejected exploration licence applications comprise the Vilar, Almendra, Beca, Caminha, Reigoso and Caramos applications.
As these applications had not been granted, no exploration work had been conducted on the areas by Savannah, the group said.
Savannah said it understands that the areas covered by the now rejected exploration licence applications fall within zones that will be the subject of an exploration application round of open public tenders that promote the interest of multinational players with demonstrated technical and financial capacities.
The group added that it currently intends to make tender offers once the tender process is launched and believes that it has excellent credentials for this process, with a strong balance sheet and demonstrated lithium exploration and development expertise.
It said it awaits advice from the DGEG concerning the status of the Calvelo, Meda and Ponte de Lima exploration licence applications.
In early morning trading, Savannah Resources shares were 5.8% lower at 8.10p.