Askari Metals Ltd (ASX:AS2) has unveiled plans to raise up to $1.5 million through a non-renounceable entitlement offer, with proceeds earmarked to accelerate exploration at its Nejo Gold and Copper Project in central western Ethiopia.
The offer will be made on a one-for-three basis, priced at $0.01 per new share, with each share accompanied by two free attaching options: one unlisted option exercisable at $0.015 within three years, and one listed AS2OB option exercisable at $0.022, expiring December 31, 2028.
Executive Director Gino D’Anna has committed to taking up his full entitlement, underscoring his confidence in the company’s African growth strategy. CPS Capital Group Pty Ltd will act as lead manager.
Funding a maiden drill campaign
Proceeds will support a maiden 3,000-metre drilling campaign across the Guji, Komto 1, and Komto 2 gold targets at Nejo, designed to validate historic exploration and test strike extensions. Field mobilisation is slated for October 20.
The work program builds on recent reconnaissance studies aimed at confirming historical results that identified significant high-grade gold and copper mineralisation across the project area.
“This rights issue provides a compelling opportunity for existing shareholders to increase their investment in Askari at a pivotal time for the company as we embark on exploration programs across both our Nejo Gold and Copper Project and our Adola Greenstone Belt Gold Projects,” said D’Anna.
“Our geological team have also been busy finalising plans and coordinating preparations for the initial exploration campaign targeting both the high-grade gold and high-grade copper mineralisation across our expansive ~1,200km² district-scale landholding.”
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District-scale opportunity
Nejo sits along the highly prospective Arabian-Nubian Shield, one of the world’s last largely underexplored but mineral-rich frontier belts.
The project hosts 10 high-priority targets with limited historical follow-up drilling and trenching, providing what the company sees as a fast-track pathway to a potential maiden JORC 2012-compliant mineral resource.
It also sits on the same greenstone belt as Allied Gold’s 3.4-million-ounce Kurmuk mine and surrounds Kefi Gold and Copper’s 1.7-million-ounce Tulu Kapi mine, highlighting the Tier-1 geological setting.
D’Anna noted that the company has received approval from key Ethiopian stakeholders, including the Federal Ministry of Mines and the Oromia Mineral Development Authority, to proceed with the planned exploration.
Broader African focus
Nejo represents Askari’s flagship gold asset, complementing its Adola Greenstone Belt Projects in southern Ethiopia, where modern exploration has been limited.
The company also continues to assess options for its Uis Lithium Project in Namibia, where it counts Huayou Cobalt as a supportive shareholder, and is reviewing divestment opportunities for its Australian assets.
The entitlement offer opens on October 21 and is scheduled to close on November 19, with securities expected to be issued on November 26. Eligible shareholders will also have the opportunity to apply for additional shortfall securities.