Moab Minerals Limited (ASX: MOM) has successfully raised $2 million through a share placement to fund exploration activities at its Manyoni Uranium Project in Tanzania.
The company announced that it has received firm commitments from sophisticated and professional investors for the placement of ordinary shares at $0.003 per share.
The capital raising will be conducted in two tranches.
The first tranche will raise $252,133 through the issue of approximately 84 million shares, utilising the company’s existing placement capacity.
The second tranche, subject to shareholder approval at the upcoming Annual General Meeting on November 29, 2024, will raise an additional $1.75 million through the issue of about 582.6 million shares.
As part of the placement, investors will receive one free attaching option for every two shares subscribed, exercisable at $0.008 and expiring three years from the date of issue.
This offer is also subject to shareholder approval.
Malcolm Day, Managing Director of Moab Minerals, expressed enthusiasm about the capital raise, stating that it will enable the company to complete validation drilling at the Manyoni Uranium Project before the rainy season and prepare for the 2025 drilling season.
He also highlighted the strategic importance of acquiring four tenements from AuKing, which will consolidate five historic uranium projects previously defined by Uranex.
The funds raised will primarily support drilling and exploration activities at the Manyoni Uranium Project.
Additionally, the capital will facilitate the completion of the AuKing acquisition, further strengthening Moab’s position in the region.
CPS Capital and Canaccord Genuity acted as lead managers for the placement, receiving a 6 per cent fee on funds raised and 66 million broker options, subject to shareholder approval.
This successful capital raising marks a significant step for Moab Minerals in advancing its uranium exploration efforts in Tanzania, with the company expecting to receive most of the assay results before the end of the calendar year.
