Moab Minerals (ASX:MOM) secured AU$350,000 in unsecured funding from Vert Capital under a binding convertible loan agreement to support general working capital and potential project acquisitions, according to an Australian bourse filing on Monday after market hours.

The facility accrues interest at 8% per annum, compounded monthly, and is convertible into shares at a 50% discount to the issue price of the company's next placement or rights issue, subject to a minimum conversion price of AU$0.0005 per share, per the filing.

The conversion is subject to shareholder approval, which the company intends to seek at its annual general meeting on Nov. 30, the filing said.

Subject to shareholder approval, the facility and accrued interest will convert into ordinary shares at the conversion price, or, if approval is not obtained within three months, be repaid in cash within the following six months, the filing added.