Savannah Gold Ramps Up Plans with $15 Million Capital Raise

Highlights:

• Savannah Gold Limited (ASX: SAV) secured AU$15 million via placement, with strong support from institutional investors and key shareholders.
• Funds to repay senior debt, restart Georgetown Plant, and support an 80-hole drilling program across Big Reef, Electric Light, and Red Dam.
• Placement priced at 1.5c per share with attaching options, strengthening Savannah’s balance sheet and growth outlook.

Strong Support for Placement

Savannah Gold Limited (ASX: SAV) has announced a successful AU$15 million capital raising, securing commitments from new institutional investors and strong backing from existing shareholders, including Chairman Stephen Bizzell and major investor Wes Maas. At the time of writing, Savannah’s shares were trading steadily as investors reacted positively to the strengthened balance sheet. The placement was split into two tranches: AU$4.1 million under existing capacity and AU$10.9 million subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).

Strengthened Balance Sheet and Debt Repayment

The company plans to allocate the funds toward several strategic priorities. A significant portion will be used to fully repay senior secured debt, a move that immediately de-leverages the balance sheet and enhances financial flexibility. Savannah will also reinvest in operations, including preparations to restart gold production at the Georgetown Gold Processing Plant later this year. Importantly, proceeds will support an 80-hole drilling program designed to test extensions of known resources at Big Reef, Electric Light, and Red Dam. This exploration campaign aims to unlock further value and extend the life of Savannah’s resource base.

Strategic Growth Outlook

Alongside operational restart and exploration, the capital raise ensures Savannah can pursue near-term gold production opportunities, while advancing longer-term growth initiatives such as Agate Creek mining and expanded exploration in 2026. The placement was priced at 1.5 cents per share, reflecting a modest discount to recent trading averages, with participants also receiving attaching options exercisable at $0.03 until December 2026.

Management highlighted that the strong demand for the placement underscores investor confidence in Savannah’s strategy. With debt reduced, production restart on track, and drilling campaigns underway, the company is well-positioned to deliver both operational and exploration upside.

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