British prospecting and mining company Savannah Resources wants to focus on lithium exploration in Portugal. To this end, the group announced on Monday it was abandoning its Mutamba operations in Mozambique and the consortium it had with Rio Tinto.

In a statement, the company revealed that the decision was made after the company completed a strategic review of its mineral sands operations in Mozambique.

"The consortium agreement made with Rio Tinto - originally announced on October 11, 2016 - will be amicably terminated with immediate effect" and "Savannah will also withdraw its remaining assets from Mozambique," reads a statement quoting Savannah's CEO.

According to the same note, David Archer revealed that Rio Tinto paid $9.5 million in cash to Savannah's British subsidiary for termination of the consortium agreement and the transfer of the team to the partner company, which now assumes full responsibility for the Mutamba project.

Savannah CEO David Archer added that by focusing on the development and commercialization of the Barroso lithium project in Portugal, Mutamba became secondary to Savannah and the exit was agreed with the partner, Rio Tinto.