Moab raises $2m to accelerate Tanzanian Manyoni uranium project exploration

Moab Minerals has raised $2m to ramp up drilling at Manyoni uranium project
Company aiming to verify historical data and define a resource at the project
Funds will also be used to wrap up AuKing tenement acquisition

Special Report: Moab Minerals has received firm commitments to raise $2m at 0.3c per share to advance drilling and exploration activities at its Manyoni uranium project in Tanzania.

The Manyoni project was previously explored, and extensively drilled, by Uranex from the early 2000s until 2013, but was abandoned due to depressed uranium prices post the Fukushima incident.

Moab Minerals (ASX:MOM) is currently conducting a 105-hole core drilling program at the project to verify historical data and allow for the definition of a JORC 2012 compliant resource.

“We started validation drilling at the Manyoni uranium project at the end of August,” Moab managing director Malcolm Day said.

“This capital raise will allow us to complete this drilling late next month (before the rains start) and prepare for the 2025 drilling season.”

The placement will take place in two tranches:

Tranche 1 to raise $252,133 via the issue of approximately 84,044,460 shares; and
Tranche 2 to raise $1,747,867 via the issue of approximately 582,622,207 shares subject to shareholder approval to be sought at the company’s Annual General Meeting expected to be held on 29 November 2024.

Each investor in the placement will also receive free attaching options, each exercisable at 0.8c and expiring 3 years from the date of issue, on the basis of one placement option for every two placement shares subscribed for, subject to shareholder approval.

Wrapping up AuKing acquisition

Additionally, the capital raise will allow the company to complete the $175,000 AuKing (ASX:AKN) acquisition, which comprised four prospecting licences covering 488km2 over parts of the historical Manyoni project that were held by Uranex before 2013.

“We’re excited by the acquisition of the four AuKing tenements that surround our Manyoni project as it will allow the company to consolidate the five historic uranium projects defined by Uranex,” Day said.

“Given we only announced the completion of the original acquisition on July 9, 2024, we’ve done well to progress the project to drilling stage.

“We expect most of the assay results back prior to calendar year end. I look forward to sharing those results with shareholders.”

In addition, the company has entered into an agreement with Goldshore Investments, an entity controlled by Day, to provide MOM with a short-term unsecured loan facility of $750,000 on arms’ length terms.

Following the announcement of the Loan Facility, Goldshore and the company have agreed that $250,000 of the loan facility, subject to the receipt of Shareholder approval, will be converted into shares at a deemed issue price of $0.003 – the same price as the placement.

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.