Moho Resources Ltd (ASX:MOH) has welcomed the results of a preliminary evaluation by consultant geochemist Richard Carver of rare earths elements (REE) assay data in the soils at Moho’s 100%-owned tenements at Burracoppin in Western Australia.
A soil survey picked out several areas of anomalous rare earth elements with values of up to 1,959 parts per million (ppm) total rare earth elements (TREE).
Higher TREE values in some areas may reflect areas of exposed ionic clays on the edge of the channel which have been exposed by erosion of overlying sediment.
Neodymium and praseodymium (NdPr) distribution in soils sampled, with NdPr oxide values up to 541 ppm, are comparable to levels reported by other parties exploring for ionic clay REE mineralisation in the Esperance region.
Capital to support exploration
The news comes as the company completes a capital raising mission, having received firm commitments to raise $1,245,973 through a placement at an issue price of $0.03 per share.
This bookbuild was oversubscribed with strong demand from sophisticated and professional investors.
The issue price of $0.03 represents a 17% discount to the last trading price of $0.036 on September 16 and a discount of 12% to the 15-day volume weighted average price (VWAP) of the company’s shares traded on ASX of $0.034.
“Moho has had a very positive market response through its oversubscribed capital raising and appreciates the valuable support provided by Peak Asset Management,” said managing director Ralph Winter.
“The funds raised will be instrumental in the advancement of Moho’s critical minerals exploration strategy.”
Settlement is expected on or around Wednesday, September 28, 2022. Moho will issue one free attaching option for every placement share issued, which will be exercisable at A$0.05, with an expiry date of January 31, 2024.
Use of funds
Proceeds of the placement will be used for general working capital and applied to exploration at Moho’s projects, including:
- Black Swan South follow-up nickel sulphide drill campaign;
- Dukes prospect native title clearance and first-pass nickel sulphide drill campaign;
- advance nickel sulphide and rare earths (REE) exploration across Burracoppin, Peak Charles and Empress Springs; and
- a drilling campaign of Burracoppin REE targets.
Moho now plans to finalise and release geochemical evaluation of REE on soils and drilling on the tenement following communications with IGO Ltd, with whom it has an unincorporated joint venture partnership.
It will then finalise and release the geochemical evaluation of lithium, base metals and gold potential at Burracoppin and prepare for aircore drilling to test for REE mineralisation in ionic clays.