Askari Metals Ltd (ASX:AS2) has cleared a key hurdle in its planned acquisition of the Nejo Gold and Copper Project in Ethiopia, confirming all three exploration licences are valid and in good standing after an independent legal review.
The company engaged an internationally recognised law firm with expertise in Ethiopian mining law to complete the due diligence, which found no overlapping claims or grounds for forfeiture. The licences, valid until March 23, 2028, cover 1,174 square kilometres in the Arabian-Nubian Shield — one of the world’s most mineral-rich geological belts.
“Askari Metals have finalised all due diligence investigations, legal and technical,” it said. “The company continues to operate in line with officially documented requirements from the proper authoritative departments that regulate the exploration licenses.”
Strong government engagement
Askari and licence holder Hong Kong Xingxu Mining International Investment Co. Ltd have held multiple meetings with authorities from both the federal mining ministry and the Oromia regional government office, securing assurances the permits remain intact. Officials also provided a letter supporting the March 2025 renewal.
These discussions also finalised an updated work program and confirmed administrative support for the company to deploy capital and resources for exploration.
The company emphasised that these outcomes directly counter previous unsubstantiated media reports suggesting the licences were at risk.
Exploration strategy taking shape
Askari is planning a regional exploration program targeting the Guji-Gudeya and Guliso gold trends, including soil and rock sampling, geological mapping, and an airborne geophysical campaign.
Initial drilling will test shallow high-grade gold mineralisation identified in previous trenching and drilling, while further work will assess high-grade copper targets at Katta in the northwest of the project area.
The project surrounds the 1.7-million-ounce Tulu Kapi gold mine and sits on the same greenstone belt as the 3.4-million-ounce Kurmuk deposit, providing a strong geological backdrop.
District-scale potential
Askari said the large-scale landholding, multiple high-grade targets, and low geological risk present a compelling pathway to a potential JORC-compliant maiden resource.
The company will assume all operator rights once the deal closes, managing day-to-day operations, exploration funding and development planning.
Xingxu Mining parent company Shining Star International Group — currently developing Angola’s first industrial copper mine — could also provide strategic and financial support as the project advances towards feasibility studies and a possible mining decision.
ESG and local engagement
The company reiterated its commitment to building an in-country technical team and maintaining close engagement with government, community stakeholders, and regional authorities.
This includes aligning exploration and development plans with Oromia regional government priorities and adhering to strict environmental, social and governance (ESG) principles.
Next steps
Askari will submit its immediate-start work program shortly, aiming to begin sampling, trenching, drilling, and airborne surveys after the rainy season, subject to permitting for equipment imports.
The acquisition remains subject to shareholder approval, with a general meeting expected in September 2025.
The company reminded investors to rely on official ASX announcements for accurate information, following misleading comments on an online forum.