Askari Metals Ltd (ASX:AS2)’s ambition to build a West and East African gold exploration portfolio, with a particular focus on establishing a Tier-1 gold position in Ethiopia on the Arabian–Nubian Shield, has been bolstered by an oversubscribed $1.6 million capital raising.
The money will be used to fund exploration across its African projects and bolster its balance sheet, while also continuing to advance its southern African rare metals exposure at Uis.
“It is outstanding to see such strong support from our existing shareholders validating the company’s strategic direction and our exploration projects. Our focus is on exploration and development in Southern Africa, where we benefit from our early entry and an experienced team providing a clear first-mover advantage. This resonates with our shareholders, and we are excited to ramp up our exploration activities across our portfolio of highly prospective projects in Southern Africa," executive director Gino D’Anna said.
“Askari has a strong and experienced team, a focused African exploration strategy and the expertise to leverage the opportunity to progress the limited follow-up drilling and exploration at the Nejo Gold and Copper Project. At the Nejo Project, our exploration team is targeting both the high-grade gold and high-grade copper mineralisation across our expansive ~1,200km² district-scale landholding."
Use of funds
Proceeds will be applied to Askari’s African-focused exploration portfolio, including:
Nejo Gold & Copper Project, Ethiopia
- Initial reconnaissance work is underway to validate historical copper and gold results at identified targets.
- A ~3,000-metre maiden drilling program is planned at the Guji, Komto 1 and Komto 2 gold targets, including confirmatory drilling, strike extensions and grid drilling.
- The Nejo Project covers 1,174km² in central western Ethiopia on the Arabian–Nubian Shield, a mineral-rich but underexplored belt hosting multiple large-scale gold and copper deposits.
- Historical work has defined 10 high-priority targets with drilling and trenching but limited follow-up and no systematic modern exploration, with drill-ready targets at Guji, Komto 1 and Komto 2.
- High-grade copper mineralisation has been identified in historic drilling in the north-west of the project area.
- The project sits in the same greenstone belt as the 3.4-million-ounce Kurmuk Mine and surrounds the 1.7-million-ounce Tulu Kapi Mine, and includes more than 60 kilometres of prospective strike along the Tulu Dimtu Shear Belt with extensive historical drilling, trenching, soil and rock sampling.
Uis Project, Namibia
- Assay results from a previous trenching campaign are set to be released.
- Tin, tantalum and rubidium exploration is scheduled to re-commence, targeting significant pegmatites already identified through drilling, trenching and sampling.
- The project lies directly along strike from the Uis Tin Mine, operated by Andrada Mining Ltd.
“The advanced nature of Nejo represents a flagship project for our company with a clear pathway to value-creation through systematic exploration, designed to progress towards a significant potential JORC (2012) mineral resource. Importantly, Nejo complements our Adola Greenstone Gold Belt Projects in Southern Ethiopia which are located on a major mineralised greenstone belt which has seen very limited modern exploration,” D’Anna said
“We will also be re-commencing exploration activities at the Uis Project in Namibia which presents a significant polymetallic opportunity showcasing high-grade tin, tantalum, rubidium and lithium mineralisation.
“We look forward to taking our shareholders on an exciting journey of discovery and growth.”
About the raise
Askari Metals’ 1-for-3 entitlement offer attracted strong support, raising a total of $1,589,679 from eligible shareholders. This comprised $660,417 from entitlement applications and a further $929,262 from additional applications, with 190 shareholders participating in the offer.
D’Anna and chairman Robert Downey both took up their full entitlements, supporting their alignment with the wider shareholder base. The company is now processing acceptances and finalising the allocation of additional shares, after which the allotment of shares and options will proceed.