Askari Metals Ltd (ASX:AS2) is accelerating its pivot to Africa, moving to finalise acquisitions in Ethiopia, restructure debt, and expand its European investor base as it sharpens focus on gold and copper exploration along the Arabian-Nubian Shield.
In a corporate objectives and activities update, the company said its recent efforts have centred on clearing internal requirements for the Nejo acquisition, which now only requires shareholder approval. At the same time, Askari is finalising the acquisition of the Adola Greenstone Belt Gold Projects in southern Ethiopia and advancing work programs to prepare for maiden drilling.
“The company has been busy moving ahead with the transformative acquisition of the Nejo Gold and Copper Project in Ethiopia, ticking off the list of internal requirements to finalise this acquisition, which is now only subject to shareholder approval,” said Askari executive director Gino D’Anna. “This is an exciting time for the company as we position ourselves to emerge as a focused African exploration and development company.”
He added that Askari has also restructured its balance sheet and partnered with AXINO Capital to expand investor engagement in Europe in support of its African projects.
“The company will now focus on advancing these projects through systematic exploration concurrent with the brownfields exploration at the Nejo project,” he added.
European investor engagement
Askari has engaged AXINO Capital to represent the company in Germany and other European markets, aiming to broaden exposure and investor awareness. European investors currently account for around 5% of Askari’s register, with the company also listed on the Frankfurt Exchange under the code 7ZG.
AXINO’s engagement will be paid in shares, including an initial short-term media program and a 12-month program, with the securities subject to escrow.
A shareholder meeting planned for early October will seek approval for the Nejo Gold and Copper Project acquisition alongside general corporate matters.
The project, located in central-western Ethiopia, is considered advanced-stage and brownfields in nature, with multiple high-grade gold and copper targets already identified.
Balance sheet restructure
Askari has also restructured a redeemable note agreement with lender Zhengrong Chen, converting part of the A$264,500 liability into shares and scheduling staged cash repayments through November 2025.
The arrangement also includes the issue of 5 million listed options as a variation fee. The restructure is designed to reduce immediate cash outflow and free up capital for exploration.
Advancing Ethiopian gold portfolio
The company has completed key share-based payments to finalise its acquisition of the Adola Greenstone Belt Gold Projects. A final cash payment of A$40,000 will complete the transaction, clearing the way for exploration to begin alongside work at Nejo.
Askari plans reconnaissance programs at high-grade copper and gold targets across both projects ahead of maiden drilling later this year.
Asset divestment strategy
While focusing on Africa, Askari is pursuing a divestment strategy to monetise its Australian assets and is also seeking a joint venture partner to accelerate exploration at the Uis Project in Namibia, with a focus on high-grade tin and tantalum zones.
“It’s been a busy period for the company, but the future is clear, and we look forward to getting boots on the ground in Ethiopia over the coming weeks as a precursor to maiden drilling at Nejo,” d’Anna said.