Moab Minerals Finalizes Acquisition of Advanced Uranium Assets in Tanzania
MOAB MINERALS LIMITED (MOM) Share Update July 2024 Monday 8th
Moab Minerals Completes Acquisition of Advanced Uranium Assets in Tanzania
Moab Minerals Limited (ASX: MOM) has announced the completion of its acquisition of an 81.85% stake in Linx Resources Pty Ltd, which holds significant uranium projects in Tanzania.
Instant Summary:
- Moab acquires 81.85% of Linx Resources Pty Ltd.
- Ownership increased to 89.6% after converting a $521,000 loan to equity.
- Assets include Manyoni and Octavo Uranium Projects, covering 216 km².
- Manyoni Uranium Project located 5km north of Manyoni town, with access to modern infrastructure.
- Drilling to commence at Manyoni project in August/September.
- Moab has $1.9 million in cash and equivalents to fund exploration.
Acquisition Details
Moab Minerals Limited (ASX: MOM) has successfully completed the acquisition of 81.85% of Linx Resources Pty Ltd, an Australian company with a diverse portfolio of advanced uranium projects in Tanzania. Following the conversion of a $521,000 loan to equity, Moab's ownership in Linx has increased to 89.6%.
The acquisition includes the Manyoni and Octavo Uranium Projects, covering a total area of 216 km². The Manyoni Uranium Project is strategically located just 5km north of Manyoni town, providing convenient access to modern railway and highway infrastructure, as well as readily available power and water resources.
Project Background
The Manyoni Uranium Project was previously explored and extensively drilled by Uranex Ltd from the early 2000s until 2013. This historical data, including drilling records, will save Moab significant time and money in their exploration efforts. The Fukushima disaster in 2011 had a dramatic impact on uranium prices, leading to the shelving of many pre-production projects worldwide. Given the current uranium price of approximately US$85/lb, Moab is well-positioned to re-evaluate the Manyoni Uranium Project and commence exploration on the Octavo Uranium Project.
Exploration Plans
Moab plans to begin drilling at the Manyoni project in August/September. The drilling program will include twinning a statistically valid number of drill holes using Sonic Drilling to ensure high core recovery and sample quality. An estimated 60 drill holes to an average depth of 25m are planned. This program aims to address the historical assay reliability.
Additional exploration efforts will include bench-scale metallurgical test work on a representative suite of bulk samples from the drill program, QA/QC control on mineralized domains, and additional bulk density measurements to verify historical records. Moab also plans to undertake an exploration drilling program designed to locate extensions to the known mineralization at Manyoni, based on grid drilling patterns around the known mineralization.
Legal and Financial Aspects
The acquisition was completed following the satisfaction of all conditions precedent, including the repayment of Linx shareholder loans and the issuance of shares and options to the sellers. The company has assumed financial obligations of Linx to Galo Capital Limited, including deferred payments for the acquisition of the projects.
The company has received legal advice that a purported Ministerial appeal by AuKing Mining Limited (ASX: AKN) regarding two of the mineral prospecting licenses is foredoomed to fail. The Fair Competition Council of Tanzania has approved Moab's acquisition of indirect control of Katika Resources Limited, which holds the Manyoni Prospecting Licenses.
The acquisition of these advanced uranium projects is a significant milestone for Moab Minerals. The access to extensive historical data and the strategic location of the Manyoni Uranium Project provide a strong foundation for future exploration and development. The current high uranium prices further enhance the potential profitability of these projects.
Investors can expect positive market reactions as Moab progresses with its exploration plans. The company's strong cash position of $1.9 million ensures that it is well-equipped to fund its initiatives. However, the ongoing legal dispute with AuKing Mining Limited may pose some risks, although the company's legal advisors are confident in a favorable outcome.
Investor Reaction:
Analysts have expressed optimism about Moab's acquisition, highlighting the strategic timing and potential of the Manyoni and Octavo Uranium Projects. The access to historical data and the current uranium price environment are seen as significant advantages. Some investors have raised concerns about the legal dispute with AuKing Mining Limited, but overall sentiment remains positive.
Conclusion:
Moab Minerals' acquisition of advanced uranium assets in Tanzania marks a transformative step for the company. Investors should monitor the progress of the exploration programs and the resolution of the legal dispute. With a strong cash position and strategic assets, Moab is well-positioned for future growth in the uranium market.