Uranium could sell for $150 per pound by 2025-2027, after nearing $106, according to Shaw and Partners. The positive outlook spurred a wave of new projects in Africa, attracting new companies.

Moab Minerals has finalized an agreement to acquire an 81.85% stake in Linx Resources. The latter holds a portfolio of advanced uranium assets in Tanzania, including the Manyoni and Octavo projects. ASX-listed Moab Minerals currently owns a uranium and vanadium project in the U.S. Its expansion in Africa is driven by a positive outlook in the sector.

"We are very pleased to announce the acquisition of such high-potential uranium projects [...]. With the current uranium price at a record level of nearly $92 per pound, it is an exciting commodity to explore," Malcolm Day, MD of Moab Minerals, said on March 12.

According to details reported by Agence Ecofin, the Manyoni project has undergone exploration work in the past, resulting in a JORC mineral resource declaration of 20.5 million pounds at a grade of 147 ppm. The Octavo project is adjacent to the world-class Nyota deposit owned by the Russian Rosatom. In exchange for the acquisition, Moab Minerals will pay consideration in multiple stages, with some contingent upon exploration results.

Many firms are flocking to Africa to develop new uranium projects. The move is spurred by an increase in uranium prices, which is driven by various factors including the resurgence of nuclear energy. According to some experts, the dynamic should last a decade, at least. 

Niger and Namibia are currently the biggest uranium producers in Africa. While Tanzania's subsoil is also rich in uranium, the country is better known in the mining sector for other resources such as gold (one of the largest producers in Africa) and graphite.

Louis-Nino Kansoun