Moab Acquires Initial ~15% Equity Interest In Highly Prospective Ghanian Lithium Projects

Moab Minerals Limited (ASX: MOM) (Moab or the Company) is pleased to announce that the Company has acquired an initial 14.64% interest in CAA Mining Limited (CAA Mining), an exploration and development company focused on lithium and gold exploration in Ghana, Africa.

Highlights:

• Moab has invested in 3 Ghanian lithium projects covered by 6 prospecting license applications for a total of 730km².
• Exploration potential identified from preliminary geological and geophysical studies and known pegmatite occurrences.
• Projects located adjacent to coastal highway both 100km away between major cities of Accra and Takoradi with a major port at Takoradi.
• A program of 20,000m of auger drilling has commenced.
• CPS Capital acted as Corporate Advisor to the transaction.

Moab Managing Director, Malcom Day commented “Following significant due diligence, we are very pleased to announce the investment in such high-potential lithium projects in Ghana. The Board believes the investment is an excellent strategic fit for Moab and will add short and long term value for Moab shareholders”.

Transaction Summary

Moab has acquired 2,727,273 fully paid ordinary shares in CAA Mining in exchange for an investment of £750,000 (approximately A$1,492,500).

The Company undertook legal, technical, and financial due diligence on CAA Mining and its assets prior to committing to the investment which included the appointment of in-country legal advisors, meetings with the directors and key management of CAA Mining, and review of agreements in place pertaining to CAA Mining’s assets.

About CAA Mining

CAA Mining is an unlisted UK-incorporated exploration and development company focused on lithium and gold in Ghana, Africa.

CAA Mining is party to an earn-in agreement to acquire up to 85% of Lithium Resources Ghana Ltd (Lithium Ghana) by spending US$8m to acquire any or all of the 6 prospecting licenses applied for by Lithium Ghana. The 6 prospecting licenses (applications pending approval) are located in Ghana and cover more than 730km2. The licenses are prospective for lithium and are along strike to the Atlantic Lithium Ewoyaa discovery (35.3 Mt @ 1.25% Li2O) with similar prospective geology.

CAA Mining has spent approximately US$500,000 to date in establishment and exploration costs associated with the 6 prospecting licenses.

CAA Mining can earn up to 70% in Lithium Ghana by spending up to US$4m on exploration. CAA Mining is seeking to raise a minimum of US$4m (of which the Company’s investment is a part of) in order to advance exploration, define a Maiden Mineral Resource in Ghana, complete a scoping study on the known and other lithium bearing pegmatites on the prospecting licences and seek a listing on a recognised securities exchange. CAA Mining has appointed a full exploration team with backup support to undertake this work.

CAA Mining can earn up to 85% in Lithium Ghana for an additional US$3,500,000 spend, which is to be assessed following the initial exploration works.

Prospecting Licenses, Prospects, and Geological Context

Pegmatite bodies in southern Ghana are associated with the emplacement of the 553Ma Cape Range Granite into >2136Ma Birimian metasediments. The pegmatites occur around the margins of the granite batholiths and internally within the folded greenstone belts.

ASX listed company Atlantic Lithium Limited (ASX: A11) has announced a lithium resource at Ewoyaa of 35.3Mt @ 1.25% Li2O (refer ASX Release: 1 February 2023). The mineralisation occurs in spodumene pegmatite. Spodumene pegmatite has also been identified at Egyasimanku (refer Figure 1).

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