Savannah temporarily halts Portugal fieldwork after legal challenge

(Sharecast News) - Savannah Resources announced the temporary halting of fieldwork on certain lands at its lithium project in Portugal on Friday, after three local landowners filed a legal challenge against the Portuguese Ministry for the Environment and Energy.

The AIM-traded firm said the challenge, known as a 'precautionary measure', contested the temporary land easement order granted by the Portuguese state in December, which allowed Savannah to conduct fieldwork for its definitive feasibility study and environmental licensing.

Under Portuguese law, the legal challenge automatically suspends the easement order until a court decision is reached, regardless of the merits of the case.

As a result, Savannah said it had paused activities on the affected land, but was continuing work on areas it owns or has the rights to access.

The company said it had secured all work sites and equipment in compliance with legal requirements.

Savannah described the legal action as an expected attempt by opposition groups to delay the project.

It said its legal advisers had reviewed the case, and considered it without merit.

While awaiting a response from the ministry, Savannah said it was planning to submit its own legal contestation and expects to resume work on the disputed land soon.

The company said it would provide further updates on the matter as necessary.

At 0936 GMT, shares in Savannah Resources were up 2.17% at 4.48p.

Reporting by Josh White for Sharecast.com.