Savannah Goldfields Sets July Gold Production Restart with $9.1M Capital Boost
Savannah Goldfields is advancing plans to resume gold production by July 2025, backed by a $9.1 million capital raise and strategic leadership appointments. The company aims to capitalise on high gold prices by processing stockpiled ore at its Georgetown plant before restarting mining operations.
- Targeted gold production restart in July 2025 beginning with stockpiled ore processing
- Approximately $9.1 million raised through placements, entitlement offers, and convertible notes
- Convertible notes maturity extended to December 2026 with revised conversion terms
- Exploration targets defined to expand mineral resource base across multiple projects
- Key executive appointments including Brad Sampson as CEO and Rod Cooper as Environmental Manager
Restarting Gold Production Amid Favourable Market Conditions
Savannah Goldfields Limited (ASX: SVG) has announced significant progress towards restarting its gold mining and processing operations, targeting a July 2025 recommencement. The company plans to initially transport stockpiled ore to its Georgetown processing plant, strategically located in Queensland’s Gulf Savannah region, to swiftly capitalise on the prevailing high gold prices.
The Georgetown plant is uniquely positioned as the sole gold processing facility within a 400-kilometre radius, offering Savannah a logistical advantage in servicing its tenements. Following the processing of stockpiled ore, mining activities are set to resume at the Big Reef and Try No More projects, with Agate Creek operations to follow pending environmental approvals.
Capital Raising Strengthens Financial Position
To underpin its operational restart and resource growth initiatives, Savannah has successfully raised approximately $9.1 million through a combination of an upfront placement, an underwritten entitlement offer, and initial tranches of conditional placements and convertible notes. The company is progressing the balance of its conditional placement and an extended placement expected to raise an additional $4 million, alongside further convertible notes issuance.
Notably, shareholders and noteholders have approved amendments to the terms of the company’s convertible notes, extending their maturity to 31 December 2026 and adjusting the conversion price to 4 cents per share. This restructuring provides Savannah with enhanced financial flexibility as it advances its production and exploration programs.
Exploration and Resource Growth Initiatives
Savannah’s geological team is actively reviewing historical data and conducting assessments to identify new mineralisation zones adjacent to existing resources. Exploration targets have been defined across several Georgetown Project tenements, including Red Dam, Phily’s, Electric Light, Jubilee Plunger, and Big Reef. These efforts aim to expand the company’s JORC-compliant Mineral Resource Estimates, supporting longer-term production sustainability.
Leadership and Environmental Oversight
Leadership changes are a key component of Savannah’s operational strategy. Brad Sampson’s recent appointment as CEO brings experienced stewardship to the company’s growth trajectory. Additionally, the appointment of Rod Cooper as Environmental Manager underscores Savannah’s commitment to meeting environmental compliance and securing necessary approvals for mining and processing activities.
Ongoing workstreams include detailed mine planning, environmental authority amendments, processing plant maintenance, and tailings storage facility design, all critical to ensuring a smooth and compliant restart of operations.
Bottom Line?
Savannah’s July restart plan and robust capital raising set the stage for renewed momentum, but execution hinges on timely environmental approvals and operational readiness.
Questions in the middle?
- What are the expected production volumes and timelines once mining fully resumes?
- How will the extended convertible notes terms impact shareholder dilution and capital structure?
- What progress is being made on environmental approvals, particularly for Agate Creek?
