By: Finance news network

Moab Minerals Limited (ASX: MOM) has announced its entry into a binding agreement to acquire 100% of Imbas Mining Pty Ltd, granting them the right to earn up to 80% ownership of the Sasare Gold and Copper Project in Zambia. Moab Minerals is an exploration and project development company focused on the exploration and development of the Manyoni Uranium Project located in Tanzania, Africa. The company also holds interests in lithium and copper-cobalt projects. The Sasare Gold and Copper Project is located approximately 407km east of Lusaka, Zambia, and is contained within a 51 sq km exploration licence.

The Sasare Gold and Copper Project shows promising exploration targets for both gold and copper. The southern part of the licence contains the historic Sasare Gold Mine, which produced approximately 12,500 troy ounces between 1906 and 1942. Exploration Target declaration for the Sasare Gold prospect based on potential mineralisation adjacent, along strike and below the historic Sasare underground Gold Mine. The project area also includes the Mweze and Eagle Eye copper prospects, which have shown significant copper intercepts in historical drilling, along with copper anomalism over a 10 km strike length identified from historic soil samples.

The company intends to expedite exploration and development efforts across the Sasare Project, with initial plans including drilling programs at both the Sasare Gold prospect and the Mweze Copper prospect. Reconnaissance work, including soil chemistry and rock chip sampling, will also be conducted. According to Moab Managing Director, Malcolm Day, the company believes there is considerable scope to discover an economic gold resource in the immediate area, as well as exciting copper intercepts to follow up on.

The completion of the acquisition is subject to various conditions, including shareholder approval for the issue of Moab securities. Moab will issue 700,000,000 fully paid ordinary shares at completion, with further deferred consideration shares to be issued upon achieving certain milestones. The company will also conduct a 25 for 1 consolidation of its fully paid shares, subject to shareholder approval.