Moab directs payload toward Tanzanian uranium assets 

Moab Minerals (ASX:MOM) has entered into a binding share sale agreement for the ‘transformational’ acquisition of 81.85% of privately held Linx Resources. 

Linx is the 80% owner of mineral licences comprising the Manyoni and Octavo uranium projects in Tanzania, which cover a total landholding of 216km-square. 

Sitting just 5km north of Manyoni town, the Manyoni Project has access to modern railway and sealed highway infrastructure, as well as readily available power and water resources. 

Meanwhile, Octavo sits adjacent to Rosatom’s ‘world-class’ Nyota Uranium deposit, which it acquired for $1.02 billion in 2011. 

Moab is committed to expediting exploration and development efforts across the Manyoni and Octavo projects. 

With about $3.2 million cash and cash equivalents at hand, the company says it is well-equipped to fund exploration and development initiatives. 

Managing Director Malcolm Day says: “We are very pleased to announce the acquisition of such high potential uranium projects. The fact that Uranex Ltd previously explored the Manyoni Uranium Project and announced a JORC 2004 Mineral Resource Estimate of 20.5 million pounds at 147pmm in 2011 is a great start for the company. 

Post completion of the transaction our priority will be to convert the historic resource to a JORC 2012 compliant Mineral Resource Estimate (MRE). With the current spot price of uranium at a 17 year high of circa US$92/lb, it’s an exciting commodity to be exploring for.”

On 14 December 2023, Moab entered into an exclusivity and loan agreement with Linx to allow the company to conduct due diligence and negotiate terms of the acquisition on an exclusive basis. 

In return for the 2 month exclusivity period, the company extended a loan of $350,000 to Linx to meet acquisition and other business costs. 

However, on 15 February 2024 the company loaned Linx a further $50,000 on the same terms as the $350,000 loan to extend the exclusivity period for an additional month. 

Therefore, consideration of the transaction includes Moab paying $360,000 in cash for the purposes of repaying Linx shareholder loans and will issue the shareholders of Linx just over 266 million securities pro rata to their shareholding in Linx. 

Subject to completion occurring, the company will assume the financial obligations of Linx in respect of deferred payments for the acquisition of the projects including a payment of US$340,000 payable on or before 22 September 2024, as well as an additional payment of US$400,00 payable on or before 22 September 2025. 

Moab will meet the cash consideration payment and deferred cash payments for the acquisition of the projects from its current cash reserves. 

Conditions precedent to the transaction include Moab completing due diligence and obtaining shareholder approval for the issue of the aforementioned consideration shares. 

Both projects sit about 100km northwest of the capital city of Dodoma and are prospecting licences that are granted for an initial 4 year period, renewable for further periods of 3 years and then 2 years. 

Moab Minerals is an explorer and project developer focused on its REX Uranium-Vanadium Project sitting in the famed Uravan Mineral Belt of Colorado, US.

Write to Adam Drought at Mining.com.au   

Images: Moab Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.