Savannah Goldfields Raises $15M via 1 Billion Shares at 1.5 Cents
Savannah Goldfields has announced a $15 million placement to strengthen its balance sheet, repay debt, and fund a restart of gold production alongside an ambitious drilling program targeting resource extensions.
- Placement of 1 billion shares at 1.5 cents raising $15 million
- Funds to repay senior secured debt and restart Georgetown gold production
- 80-hole drill program targeting Big Reef, Red Dam, and Electric Light deposits
- Directors and major shareholders participating in the placement
- Convertible notes maturity extended with reduced conversion price
Capital Raise and Strategic Funding
Savannah Goldfields Limited (ASX – SVG) has secured firm commitments for a $15 million capital raise through the placement of 1 billion new shares at 1.5 cents each. The placement is structured in two tranches – an initial $4.1 million issued under existing placement capacity, and a further $10.9 million subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM) scheduled for late September. This capital injection is well supported by key insiders, including Chairman Stephen Bizzell and major shareholder Wes Maas, signaling strong confidence in the company’s strategic direction.
Debt Repayment and Production Restart
The proceeds will primarily be used to fully repay Savannah’s senior secured debt, a move that significantly improves the company’s financial flexibility. Crucially, the funds will also enable Savannah to recommence gold production later this year at its Georgetown Gold Processing Plant (GGPP), leveraging ore from the Big Reef deposit and existing stockpiles. This restart is a pivotal step towards generating near-term cash flow and validating the company’s operational capabilities.
Exploration Ambitions and Growth Potential
Beyond immediate production goals, Savannah plans an extensive 80-hole reverse circulation drilling program targeting priority exploration areas within the Georgetown region. The program aims to test strike extensions at Big Reef, Red Dam, and Electric Light deposits, all of which hold promising mineralisation potential. This exploration campaign could materially expand the company’s resource base, underpinning longer-term growth and value creation.
Additional Operational Plans and Shareholder Incentives
Looking ahead, Savannah intends to resume mining operations at its Agate Creek project and process ore through the Georgetown plant in the first half of 2026, further diversifying its production profile. To sweeten the placement, participants will receive attaching options exercisable at 3 cents, expiring at the end of 2026, subject to shareholder approval. Directors have also committed to participate in the placement, reinforcing alignment with shareholder interests.
Convertible Notes Amendment
In a related development, Savannah has amended the terms of its outstanding convertible notes, extending their maturity to December 2026 and reducing the conversion price to 4 cents. This adjustment provides the company with additional financial runway while potentially easing future dilution pressures.
Bottom Line?
Savannah’s $15 million raise sets the stage for a critical production restart and exploration push, but investors will watch closely for drilling results and shareholder approval outcomes.
Questions in the middle?
- Will shareholders approve the second tranche and attaching options at the upcoming EGM?
- How quickly can Savannah ramp up production at Georgetown and Agate Creek to generate meaningful cash flow?
- What impact will the convertible notes amendments have on future share dilution and capital structure?
