Askari Metals Ltd (ASX:AS2) has formerly completed its strategic acquisition of the brownfields Nejo Gold-Copper Project in Ethiopia, securing a district-scale position on the Arabian–Nubian Shield and paving the way for an accelerated exploration push across multiple high-grade targets.
The deal delivers Askari ownership of Hong Kong Xingxu Mining International Investment Co. Ltd, holder of the 1,174-square-kilometre project area surrounding Kefi Gold + Copper’s 1.7-million-ounce Tulu Kapi development and along strike from Allied Gold’s 3.4-million-ounce Kurmuk deposit. The move significantly deepens Askari’s African portfolio and places its exploration efforts inside one of the region’s most prospective greenstone belts.
The company now enters what it describes as an “inflection point”, with recently raised funds strengthening the balance sheet as exploration ramps up.
Map depicting the locality of the Askari Metals “Nejo Gold Project” in relation to the major gold deposits of Ethiopia.
Exploration under way across gold and copper trends
Fieldwork has already commenced across two major gold corridors at Nejo — the Guji-Gudeya and Guliso trends — which together span more than 18 kilometres of strike. Early work includes soil and rock sampling, geological mapping and trenching ahead of a maiden drilling program designed to validate historical reverse circulation (RC) and diamond drilling and extend known mineralised zones.
Read more: Askari Metals mobilises field team for Nejo gold–copper program in Ethiopia
Targets along these trends include Guji, Komto 1, Komto 2, Soyoma, Dina, Chago and South Chago — many of which returned strong near-surface gold grades in past programs but have seen little systematic follow-up.
In tandem, Askari has launched an expanded copper-focused campaign at the Katta target in the northwest. Katta hosts high-grade copper mineralisation identified in historical drilling by the United Nations Development Programme, alongside several untested copper gossans. The company says the geology points towards a potential volcanogenic massive sulphide (VMS)-style system that remains underexplored.
Airborne and ground geophysical surveys are also being prepared to refine drill targets and interpret the continuity of mineralised shear zones beneath thin cover.
Accelerated pathway to potential maiden resource
Askari believes the combination of brownfields geology, multiple near-surface targets and extensive historic datasets provides a clear pathway to defining a maiden JORC resource. The company is prioritising drill-ready areas where historical results already demonstrate continuity of mineralisation, including the Guji and Komto prospects.
Plans for initial drilling at Guji, Komto 1 and Komto 2 are being finalised, with field conditions to determine the start date.
Funding and regulatory settings support next phase
The acquisition follows the completion of an oversubscribed $1.6 million entitlement offer and the sale of Askari’s Australian assets to Forrestania Resources Ltd, leaving the company well funded for its Ethiopian programs.
Read more: Strong shareholder support drives Askari Metals’ oversubscribed $1.6M raise
Ethiopia continues to advance a pro-mining regulatory environment, with several large-scale gold projects in development and strong state support for foreign investment. Nejo’s location — close to population centres and connected by sealed roads — provides logistical advantages for exploration and development.
Share issue and next steps
As part of the transaction, Askari has issued 14.28 million shares and 20 million unlisted options (6-cent strike, three-year term) to Shining Star International Holdings Ltd, with the shares subject to 12 months’ voluntary escrow. All cash payments under the agreement have been completed.
Executive director Gino D’Anna said the completion of the acquisition and recent capital raising placed the company on firm footing as activity accelerates.
“We are now well funded and strategically positioned to accelerate our exploration and development activities across Africa,” he said. “The Nejo Project represents a flagship opportunity for Askari — a district-scale landholding on the globally significant Arabian–Nubian Shield, located alongside established multi-million-ounce gold deposits.”
With multiple workstreams now in motion, Askari expects steady news flow as trenching, sampling, geophysics and upcoming drilling define the scale of the opportunity at Nejo.