Moab Minerals has completed its 81.5% acquisition of the shares of Linx Resources which boasts a diverse portfolio of large-scale uranium projects in Tanzania. Pic: Getty Images
Moab finalises uranium project acquisition
Mining
share
- Moab has completed the acquisition of 81.85% of the shares of Linx Resources
- It has also converted its loan to Linx of $521,000 to equity in Linx
- This takes its ownership to 89.6% with exploration set to begin shortly
Special report: Moab Minerals has finalised an 81.85% acquisition of shares in Linx Resources, bringing its total ownership to 89.6% as it looks to capitalise on uranium’s strong market fundamentals.
Moab Minerals (ASX:MOM) is well-acquainted with uranium with its project portfolio comprising the historical REX project in Colorado’s famed Uravan mineral belt.
But with analysts tipping an upwards surge in uranium prices later this year amid a growing supply shortage, the explorer moved to increase its exposure to the glowing metal through the acquisition of a majority stake in Linx.
Linx owns 80% of the Manyoni and Octavo uranium projects, which sit in the central part of the Tanzanian Archaean Shield – a stable platform of granite-gneiss terrane with marginal greenstone belts.
Drilling to begin by September
The explorer is looking to use its $1.9m in cash and equivalents to fund exploration and development activities across both projects with drilling to begin at Manyoni in August or September. Moab has called for tenders from a range of experienced drilling companies and is in the process of finalising a contract for a minimum of 1500m of PQTT core drilling with the option to drill an additional 1500m.
The drilling work that Moab will undertake at the Manyoni Uranium Project includes
twinning of a statistically valid number of drill holes using Sonic Drilling which provides the highest core recovery and sample quality. An estimated 60 drill holes to an average depth of 25m are planned. This program is designed to address the historical assay reliability.
In addition to the above drilling, Moab is planning to undertake an exploration drilling program that is designed to locate extensions to the known mineralisation at Manyoni.
“This acquisition completion of such high potential uranium projects is transformational for the company,” MOM managing director Malcolm Day said.
“The fact that Uranex previously explored, and extensively drilled Manyoni from the early 2000s to 2013 assists the company greatly (and) there is a large volume of historic exploration data including drilling data that Moab has access to, saving us time and money.
“The Fukushima disaster in 2011 had a dramatic impact on the uranium price, and thus most pre-production uranium projects worldwide, including Manyoni, were shelved.
“Given the current uranium price of circa US$85/lb, Moab is in the right place at the right time to re-evaluate the Manyoni project and to begin exploration on the Octavo Uranium Project.”
This article was developed in collaboration with Moab Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
