Moho ‘heavily oversubscribed’ for critical minerals exploration funding

Sophisticated and professional investors have heavily oversubscribed for Moho’s placement of more than $1.24m to fund nickel sulphide and rare earths exploration.

The 41.5 million placement shares are priced at 3c each, which represents a 12% discount to the 15-day volume weighted average price of the company’s shares.

It includes one free attaching option exercisable at 5c and expiring 31 January 2024 for every share subscribed.

Proceeds from the placement will be used by Moho Resources (ASX:MOH) for follow-up nickel sulphide drilling at Black Swan South, native title clearance and first pass drilling at the Dukes prospect, advance nickel sulphide and REE exploration across Burracoppin, Peak Charles and Empress Springs, and drilling REE targets at Burracoppin.

It comes as recent soil surveying at Burracoppin has identified several areas of anomalous REEs with values of up to 1,959 parts per million (ppm) total rare earth oxides.

The company noted that the higher REE values in some areas may reflect areas of exposed ionic clays on the edge of the channel which have been exposed by erosion of overlying sediment.

Importantly, the neodymium and praseodymium distribution in soils, which NdPr oxide values of up to 541ppm, are comparable to those reported by other parties exploring for ionic clay REE mineralisation in the Esperance region.

“Moho has had a very positive market response through its oversubscribed capital raising and appreciates the valuable support provided by Peak Asset Management,” managing director Ralph Winter.

“The funds raised will be instrumental in the advancement of Moho’s critical minerals exploration strategy.”

He added that the identification of previously unknown anomalous REE areas from first pass exploration at Burracoppin was very pleasing.

“Given the proximity to IGO’s Lake Campion REE project this is a fantastic development for the company. The elevated results are comparable and in some cases in excess of our REE peers and allows the company the ability to vector into areas of REE hosting clays,” Winter explained.

“These results solidify Moho’s critical mineral strategy and will generate value for the company as the projects develop.”

Critical minerals exploration

Just last week, the company tasked its consultant geochemist Richard Carver to review its available (and substantial) geochemical database to identify areas within its Burracoppin tenements that may host REEs and other critical minerals.

While first acquired for its gold potential, project partner IGO’s (30%) recent move to apply for 10 exploration licences and acquire 11 privately owned licences and applications – the Lake Champions project, which have high prospectivity for REEs, in particular some valuable, heavy REEs.

In August, the company carried out low cost passive seismic surveying at Black Swan South to investigate the weathering profile intersected by a recent reverse circulation hole, which is deeper and markedly different to other nearby drilling locations and coincides with a geophysical interpretation of northwest-southeast structure/shear zone.

Moho also identified coincident nickel and copper soil anomalies extending over 2.5km which overlays a 3.6km long magnetic anomaly at Dukes.

This article was developed in collaboration with Moho Resources, 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.