Askari Metals Ltd (ASX:AS2) has signed a binding agreement to sell its Burracoppin Gold Project in Western Australia to Forrestania Resources Ltd (ASX:FRS), a move that clears the decks for an unambiguous focus on its African gold, copper and rare metals portfolio.
The sale involves 100% of the shares in Askari subsidiary First Western Gold Pty Ltd, which holds seven exploration licences and one application, including Burracoppin’s JORC 2012 mineral resource of 2.14 million tonnes at 1.2 g/t gold for 82,700 ounces.
Transaction terms
The deal is valued at $700,000, comprising $250,000 in cash and $450,000 in tradable Forrestania shares. Settlement is expected before the end of September.
As part of the transaction, Forrestania will also receive 15 million listed options in Askari, exercisable at 2.2 cents until December 2028, and 30 million unlisted options exercisable at 6 cents for three years. These instruments provide Forrestania with future exposure to Askari’s African exploration upside.
Funding pathway and strategic focus
Executive director Gino D’Anna said the timing of the divestment aligned with record gold prices and allowed Askari to advance its Ethiopian Nejo Gold and Copper Project without resorting to dilutive capital raisings.
“The sale of our Australian exploration portfolio is a continuation of our strategy to define Askari as a focused African explorer and developer,” D’Anna said.
“Total consideration payable pursuant to the transaction is A$700,000, providing Askari with access to immediately available funds to not only complete the deal to acquire the Nejo Project in Ethiopia but also commence initial exploration at the Nejo Project ahead of us gearing up for maiden drilling planned for November 2025.”
African projects in focus
Askari is prioritising two large-scale assets:
- Uis Rare Metals Project, Namibia: Drilling and trenching has intersected rare-metal pegmatites as well as high-grade tin, tantalum, rubidium and lithium across its 400-square-kilometre landholding, near Andrada Mining Ltd’s producing Uis mine.
- Nejo Gold and Copper Project, Ethiopia: A 1,174-square-kilometre district-scale package on the Arabian-Nubian Shield, with historical high-grade gold and copper intercepts. A regional exploration program has been finalised at the Guji-Gudeya and Guliso gold trends, including soil and rock sampling, mapping and trenching to support a maiden drill campaign later this year.
An airborne geophysical survey is also planned to refine targets and expand trenching, with fieldwork to extend across copper prospects at Katta in the project’s northwest.
Askari believes the Nejo project offers a compelling pathway toward delineating a maiden JORC-compliant resource, supported by its large scale, multiple high-grade targets and relatively low geological risk.
Next steps
With the Burracoppin divestment due to complete by month-end, Askari intends to direct newly unlocked capital into its Ethiopian and Namibian programs, with maiden drilling at Nejo scheduled for November as the company accelerates its transition into a dedicated African explorer.