ResourceAuKing Mining Limited (ASX: AKN) has recently announced the sale of its remaining non-core Prospecting Licences (PLs) at the Manyoni uranium project in Tanzania to Moab Minerals Limited (ASX: MOM) for a total purchase price of A$175,000. The sale is subject to certain conditions, including due diligence, ministerial approval for transfers, and approval from the Fair Competition Council (FCC) of Tanzania if required.
The decision to sell the PLs comes after two key PLs at the Manyoni project were revoked by the Tanzanian Mining Commission back in February 2023. Despite efforts by AuKing management to re-secure the revoked PLs, no response has been received, leading the Board to see limited prospects of recovering them. As a result, the sale to Moab Minerals was deemed the best available option to secure value for the remaining holdings at Manyoni.
The sale of the PLs does not impact AuKing’s plans to commence drilling at its Mkuju uranium project in southern Tanzania. The Mkuju project is separate from Manyoni and remains a focus for the company. AuKing aims to become a mid-tier producer in the uranium, critical minerals, and base metals space through the development of its various exploration assets.
In addition to the Manyoni and Mkuju projects, AuKing holds a diverse portfolio of exploration assets, including the Koongie Park copper-zinc project in Western Australia and the Myoff Creek niobium-REE project in British Columbia, Canada. The company is led by an experienced management team with a strong focus on corporate governance and clear communication of corporate activities to the investment markets.
This acquisition marks a significant step for Moab Minerals as it aims to develop its primary uranium assets in Tanzania, including the Manyoni and Octavo projects. Tanzania is a global leader in identified uranium resources, with a supportive government that positions the country as a key player in the global nuclear energy sector. Moab’s acquisition of the PLs at Manyoni will consolidate all of the uranium deposits in the region for the first time in over a decade.
With a high-caliber team and well-funded exploration plans, Moab Minerals is well-positioned to expedite the exploration and development of its uranium projects in Tanzania. The company’s focus on drilling activities and target extensions at Manyoni and Octavo projects demonstrates its commitment to unlocking the potential of these assets.
Overall, the sale of the Manyoni PLs by AuKing to Moab Minerals represents a strategic move that will benefit both companies as they continue to advance their respective uranium projects in Tanzania. Investors in the uranium sector will be watching closely as these developments unfold and the companies work towards achieving their production goals in the near future.