Moab to Issue 1 Billion Shares in Bid for Sasare Gold and Copper Project
Moab Minerals is set to acquire full ownership of Imbas Mining, unlocking rights to earn up to 80% of the Sasare Gold and Copper Project in Zambia, a site with notable historic gold production and promising copper targets. The acquisition paves the way for an initial exploration campaign targeting both gold and copper mineralisation.
- Acquisition of 100% of Imbas Mining Pty Ltd by Moab Minerals
- Rights to earn up to 80% interest in Sasare Gold and Copper Project
- Historic gold mine produced ~12,500 ounces between 1906-1942
- Significant historic copper intercepts supporting IOCG exploration model
- Exploration targets declared with planned drilling and reconnaissance
Strategic Acquisition Unlocks Zambian Gold and Copper Potential
Moab Minerals Limited (ASX – MOM) has announced a binding agreement to acquire 100% of Imbas Mining Pty Ltd, which holds rights to earn up to an 80% interest in the Sasare Gold and Copper Project, located in Zambia. This acquisition marks a significant step for Moab as it expands its African exploration footprint into a region with a rich mining history and promising exploration upside.
The Sasare Project covers a large exploration licence spanning over 51 square kilometres, strategically positioned 370 kilometres east-northeast of Lusaka. The licence hosts the historic Sasare Gold Mine, which produced approximately 12,500 troy ounces of gold between 1906 and 1942 before being abandoned during World War II. The project also features multiple copper prospects with encouraging historic drilling results.
Exploration Targets and Geological Setting
Moab’s acquisition includes access to a highly prospective exploration licence that sits on the Mwembeshi shear zone, a major regional structure known to host significant gold and copper mineralisation. The southern licence area contains the historic gold mine with a quartz vein complex extending at least 1.6 kilometres in strike, offering potential for bulk open-pit mining.
To the north, the licence encompasses copper prospects such as Mweze and Eagle Eye, where historic drilling by African Eagle Resources PLC and earlier explorers has intercepted substantial copper mineralisation. Notable drill results include intercepts like 52 metres at 2.72% copper and 65 metres at 0.70% copper, supporting an iron oxide copper gold (IOCG) exploration model.
Moab has declared exploration targets for both gold and copper prospects, with the gold target ranging from 0.8 to 2.3 million ounces and the copper target ranging from 0.2 to 0.7 million tonnes of contained copper. These targets remain conceptual, pending further drilling to establish JORC-compliant mineral resources.
Structured Earn-In and Consideration Terms
The acquisition includes a staged earn-in agreement whereby Imbas Mining, now under Moab’s control, can increase its interest in the project up to 80% through milestone payments and resource delineation. Stage 1 involves acquiring 51% ownership upon payment of $700,000 in cash or shares, while Stage 2 requires delineation of a JORC-compliant inferred resource of at least 1.4 million tonnes at 1.2% copper and a further payment of $1 million.
Consideration for the acquisition includes the issue of 700 million fully paid ordinary shares at completion, with an additional 300 million deferred shares contingent on milestone achievements. The transaction is subject to shareholder and regulatory approvals, alongside a planned capital raising of at least $1.5 million to support initial exploration activities.
Next Steps – Exploration and Market Implications
Moab plans to expedite exploration with an initial drilling program targeting extensions below the historic Sasare gold mine and copper mineralisation at Mweze. Reconnaissance work including soil geochemistry and rock chip sampling will complement drilling to refine targets. The company also intends to appoint a non-executive director from Imbas shareholders to its board, reflecting the strategic nature of the acquisition.
This acquisition positions Moab to leverage a historically productive gold asset alongside a copper system with IOCG characteristics, a style known for large, high-value deposits. Success in advancing the Sasare Project could significantly enhance Moab’s asset portfolio and market profile.
Bottom Line?
Moab’s move into Zambia’s Sasare Project sets the stage for a pivotal exploration phase that could redefine its growth trajectory.
Questions in the middle?
- Will Moab successfully delineate a JORC-compliant resource to trigger full earn-in?
- How will the planned capital raising and share consolidation impact shareholder value?
- What are the timelines and risks associated with regulatory and shareholder approvals?