Why Moab Minerals (ASX:MOM) is leaning on loans to keep its Tanzanian uranium project moving

Sonal Goyal

12 November 2026 02:06 PM AEDT

Why Moab Minerals (ASX:MOM) is leaning on loans to keep its Tanzanian uranium project moving

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Key Highlights

Cash was just $21,000 at 30 September, equal to an estimated 0.17 quarters of funding.
A $350,000 convertible Loan with Vert Capital was signed on 5 October 2026, adding to about $1.8 million of loans already drawn.
Manyoni carries a JORC 2012 Mineral Resource containing 27.19 million pounds of U₃O₈ at an average grade of 136ppm.
The AGM on 30 November 2026 will vote on issuing 62.5 million shares to AuKing for recently acquired tenements.

Moab Minerals (ASX:MOM) holds the Manyoni uranium project in central Tanzania, which carries a JORC 2012 Mineral Resource, but its September quarter Appendix 5B, released on 27 October 2026, shows just $21,000 in cash at 30 September 2026 and an estimated 0.17 quarters of funding. Shortly after quarter end the company signed a $350,000 convertible loan, adding to about $1.8 million in loans already drawn.

That leaves Moab's next steps on Manyoni, including metallurgical testwork and drilling, explicitly dependent on funding. The Annual General Meeting on 30 November 2026 will also vote on shares to pay for recently acquired tenements.

What Moab does

Moab is an exploration company. Its main asset is Manyoni, where an updated Mineral Resource Estimate announced on 23 September 2025 contains 27.19 million pounds of U₃O₈ at an average grade of 136ppm, using a 100ppm cut-off. It also holds the Highline copper-cobalt project in Nevada, where no work was done in the quarter, and is assessing acquisitions in Africa and Australia focused on gold and energy metals.

A resource estimate is not a reserve, and no economic study has been completed. Moab says a scoping study is a possible later step, informed by metallurgical work.

Manyoni expansion and AGM vote

In March 2026 Moab agreed to acquire four prospecting licences next to its existing Manyoni tenements from AuKing Mining. The licences have now been transferred, and resolution 5 at the AGM seeks approval to issue 62.5 million shares to AuKing as consideration, escrowed for six months. The new ground covers interpreted extensions of the palaeochannel system that hosts the existing mineralisation. Historical estimates on parts of that ground predate the JORC 2012 Code and should not be read as current resources.

The company says drilling is contemplated for calendar 2027, subject to funding and approvals, and the timing of metallurgical testwork will depend on its funding position.

Cash, Debt and the new convertible loan

The Appendix 5B shows net operating outflows of $79,000, mainly administration and staff costs, plus $79,000 of investing outflows, comprising $47,000 on exploration and evaluation and about $32,000 on Acquisition due diligence. Financing added just $10,000 in borrowings. Cash fell from $166,000 at the start of the quarter to $21,000.

Loan facilities of $1.8 million were fully drawn: $500,000 owed to Goldshore Investments, a related party of managing director Malcolm Day, and $1.3 million owed to European Lithium across three loans, all unsecured at 10% interest and repayable by 31 December 2027.

On 5 October 2026 Moab entered a $350,000 unsecured convertible loan with Vert Capital at 8% interest. Subject to Shareholder approval, it can convert into shares at a 50% discount to the next Placement or rights issue price, with a floor of $0.0005. If approval is not obtained within six months, it becomes repayable in cash. Vert Capital's founder, Petar Tomasevic, joined the board on 27 October 2026, replacing David Wheeler. The company also says it is considering Equity funding and converting some liabilities to equity.

Risks and what to watch

The central risk is funding. With minimal cash, fully drawn loans and a convertible note that converts at a steep discount, any equity raising could be substantially dilutive at current prices. Moab's shares were also suspended on 1 October 2026 for not lodging its Annual Report on time, and reinstated on 6 October after it was lodged. The related-party lending and the new director's link to the convertible lender are governance points shareholders may examine. Uranium exploration in Tanzania also carries permitting and sovereign risk.

Milestones include the AGM on 30 November 2026, any shareholder meeting to approve conversion of the Vert Capital loan, any placement or rights issue, and the December quarter report.

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