Savannah Resources, in response to the recent media speculation, confirmed that it is currently not involved in the process of selling the Barroso Lithium project in Portugal.

The UK-based lithium development company called the Portuguese press reports saying that the company is close to a sale as ‘unfounded and misleading’.

The project has received significant commercial interest for years and is now working to identify a shortlist of potential partners, said Savannah.

Savannah Resources, in its statement, said: “The company has received significant commercial interest in the project for several years now and following the endorsement of the DIA and the completion of the new positive Scoping Study, there has been additional interest generated from across the lithium value chain.

“From the dozens of commercial inquiries which Savannah has received, the company is currently working through an orderly process to shortlist potential strategic partners for the project.

“Savannah is focusing on identifying groups which are willing to assist with the financing of the project’s construction and bring complementary skills or additional opportunities to a long-term partnership with Savannah.”

In May 2017, Savannah acquired a 75% interest in the lithium project and maintained a fast-paced development approach.

The company received the environmental impact assessment (EIA) from the Portuguese government in May this year, which got caught up in red tape.

Savannah secured a positive Declaration of Environmental Impact (DIA) from the Portuguese Environmental regulator Agência Portuguesa do Ambiente (APA) for the lithium project.

In July this year, Savannah raised £6.1m through equity to advance its Barroso project in Portugal, which is expected to be the largest lithium mine in Western Europe.

The company raised £2.4m through the placing of 51.2 million shares at 4.67 pence each, alongside £3.7m through the subscription of 79.2 million shares at the same price.