Moab’s Loan and Placement Highlight Reliance on Shareholder Support Amid Exploration Push
Moab Minerals has raised $141,000 through a share placement and secured a $500,000 loan from European Lithium to fund exploration and working capital, underscoring strong shareholder support.
- 141 million shares placed at $0.001 each under existing capacity
- Unsecured $500,000 loan from European Lithium at 10% interest
- Funds aimed at Manyoni Uranium Project exploration and new resource opportunities
- Loan reflects backing from a key shareholder
- Placement shares expected to be issued on 11 July 2025
Capital Raise and Loan Agreement
Moab Minerals Limited (ASX, MOM) has announced a modest but strategically significant capital raise through the placement of 141 million ordinary shares at a price of $0.001 per share. This placement, conducted under the company’s existing ASX placement capacity, is expected to be completed on 11 July 2025. Alongside this, Moab has secured an unsecured cash loan of $500,000 from European Lithium Ltd (ASX, EUR), a key shareholder, carrying a 10% annual interest rate and repayable in one year.
Purpose of Funds
The combined $641,000 injection is earmarked primarily for advancing exploration activities at Moab’s Manyoni Uranium Project in Tanzania, as well as for assessing new resource project opportunities. The funds will also support general working capital needs, providing the company with operational flexibility as it navigates the competitive junior exploration landscape.
Strategic Shareholder Support
European Lithium’s loan to Moab is a clear signal of confidence from a significant shareholder, reinforcing the collaborative relationship between the two companies. Bryan Hughes, Moab’s Non-Executive Chairman, highlighted this backing as an endorsement of Moab’s ongoing work and future potential. This financial support may also hint at potential synergies or strategic alignment between Moab’s uranium and lithium interests.
Broader Portfolio and Growth Prospects
Moab’s portfolio extends beyond uranium, including projects in Colorado and Nevada, as well as a notable stake in CAA Mining, which focuses on lithium and gold exploration in Ghana. This diversified approach positions Moab to capitalize on multiple resource trends, although the immediate focus remains on advancing uranium exploration in Tanzania.
Looking Ahead
While the capital raise and loan are relatively modest in scale, they provide critical runway for Moab to progress its exploration agenda. Investors will be watching closely for upcoming drilling results and any new project acquisitions that could materially enhance the company’s resource base and valuation.
Bottom Line?
Moab’s fresh funding and shareholder backing set the stage for a pivotal year in uranium exploration.
Questions in the middle?
- What specific exploration milestones will Moab target with the new funds?
- How might European Lithium’s loan influence future strategic partnerships?
- Could Moab pursue further capital raises if exploration results prove promising?
