Moab Minerals Locks in $350K Loan That Converts to Shares at 50% Discount
Key Takeaways
- Moab Minerals has secured a A$350,000 convertible loan from Vert Capital Pty Ltd, structured to provide working capital for existing operations and potential project acquisitions.
- The conversion price is set at a 50% discount to the issue price under the company's next placement or rights issue, with a minimum floor of $0.0005 per share.
- The loan carries an 8% per annum interest rate, accrued monthly on a compounding basis, and is unsecured.
- Shareholder approval for conversion is targeted at the Annual General Meeting scheduled for 30 November 2026 — if not obtained within three months of signing, the facility must be repaid in cash within six months thereafter.
- Management has flagged a specific acquisition focus on gold and energy metals opportunities in Africa and Western Australia alongside the ongoing Manyoni Uranium Project in Tanzania.
Moab Minerals secures A$350,000 convertible loan facility
A binding A$350,000 convertible loan agreement has been signed by Moab Minerals Limited (ASX:MOM) with Vert Capital Pty Ltd, according to an announcement dated 5 October 2026. The facility (the Facility) is designed to provide additional working capital for the company’s existing activities and the evaluation of potential project acquisitions.
For investors, it adds funding while Moab advances the Manyoni Uranium Project in Tanzania and weighs new opportunities.
Malcolm Day, Managing Director
“We are pleased to be working with Vert Capital and their investors. The funding provides Moab with additional working capital as we continue to advance the Manyoni Uranium Project in Tanzania and assess new project acquisition opportunities, with a particular focus on gold and energy metals opportunities in Africa and Western Australia.”
The Board of Moab believes the terms of the Facility are appropriate and reasonable, having regard to the company’s current funding requirements and prevailing market conditions.
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Key terms of the convertible loan
The table below sets out the disclosed terms. An Appendix 3B (the ASX form used to notify new share issues) was lodged with the announcement.
| Term | Detail |
|---|---|
| Loan amount | A$350,000 |
| Interest rate | 8% per annum, accrued monthly on a compounding basis |
| Security | Unsecured |
| Use of funds | General working capital purposes |
| Conversion price | 50% discount to the issue price under the Company’s next placement or rights issue, subject to a minimum conversion price of $0.0005 per Share |
| Shareholder approval | Conversion is subject to conditions precedent including obtaining Shareholder Approval under the ASX Listing Rules |
The announcement does not disclose an actual conversion price or the number of shares to be issued, because the next placement or rights issue has not yet been priced.
How convertible loans work for investors
A convertible loan is a loan that converts into shares instead of being repaid in cash, usually at a discount to a future raise price. Here, the discount is 50% to the issue price under the next placement or rights issue.
What that means for you: at a discount, the loan converts into more shares than a straight purchase at the raise price would deliver. The exact scale cannot be calculated until that raise is priced.
- Discount: conversion is set at a 50% discount to the next placement or rights issue price.
- Floor: a minimum conversion price of $0.0005 per Share applies.
- Approval: conversion depends on Shareholder Approval under the ASX Listing Rules.
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Conversion, repayment and what comes next
The announcement sets out the following sequence:
- Moab intends to seek Shareholder Approval at its Annual General Meeting scheduled for 30 November 2026.
- Subject to approval, the Facility, together with accrued interest, will convert into fully paid ordinary shares at the Conversion Price.
- If Shareholder Approval is not obtained within three months of the date of the Convertible Loan Agreement, the Facility, together with accrued interest, must be paid in cash within six months thereafter.
The announcement does not state the date of the Convertible Loan Agreement, so the three-month deadline cannot be expressed as a calendar date.
Looking ahead, the stated focus is advancing the Manyoni Uranium Project and assessing new acquisitions, particularly gold and energy metals opportunities in Africa and Western Australia. The Annual General Meeting on 30 November 2026 is the next milestone flagged in the announcement.
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