Askari Metals Ltd (ASX:AS2) earlier this week announced it has acquired full ownership of Hong Kong Xingxu Mining International Investment, giving the company full rights to the Nejo Gold and Copper Project in Ethiopia.
The company told investors that the project comprises three licences valid until March 2028, allowing a multi-year window to advance exploration and feasibility work. Askari said this acquisition gives it unencumbered access and the ability to execute activities aligned with its development plans.
The update follows a AUD 1.6 million capital raise through a rights issue. The company said the result demonstrates alignment between shareholders and its exploration strategy. Most of the funds will be directed toward Nejo, with activities to include an initial diamond drilling campaign, infill and extensional trenching, and aerial geophysical surveys.
Askari highlighted that the raise enables it to run multiple workstreams in parallel. “This funding doesn’t just support the initial drilling – it also lets us run multiple workstreams simultaneously,” said Executive Director Gino D’Anna.
D’Anna also said exploration commenced approximately two and a half weeks ago. He said time in the field has been focused on community engagement and preparation for the maiden drilling campaign. “It's been really important from the perspective of ensuring the discovery is properly represented within the local community,” he said.
The company said it has access to historical exploration data, which it has been digitising to improve drill targeting and inform broader program design. It added that these efforts have helped finalise early design parameters for drilling and provided insight into exploration plans extending into 2026.
In addition to Nejo, Askari said it plans to recommence exploration at its Oelsner Project, targeting tin, tantalum, and rubidium. The company noted that this second front of activity would support continued news flow and momentum across its African exploration portfolio.
Askari concluded that with corporate activities now complete, the company is focused on advancing its projects and delivering value through exploration progress.
Proactive: Welcome back to Proactive Newsroom. I'm now joined by Askari Metals Executive Director, Gino D’Anna. Welcome back, Gino.
Gino D’Anna: Thank you very much.
Proactive: Gino, let's start with today's news. You've now fully acquired Hong Kong Xingxu Mining International Investment, the owner of the Nejo Gold and Copper Project. What does this now grant you?
Gino D’Anna: It really streamlines our entry and ownership rights in Ethiopia. The Nejo Gold and Copper Project is made up of three licences, which expire in March 2028. So, we have a long runway to undertake initial exploration, development, and move the project toward technical and economic feasibility assessment.
The real benefit of owning the asset is that it's uncompromised. We have unencumbered access and full rights to explore and conduct activities we deem appropriate. That gives us and our shareholders a focused position in Ethiopia and supports momentum across the broader African exploration strategy.
Proactive: This follows a AUD 1.6 million raise earlier in the week. Those funds will go toward exploration at Nejo. What else will they be used for?
Gino D’Anna: Raising those funds through the rights issue was a great result. It shows our shareholders are aligned with the company's exploration strategy and asset portfolio.
Most of the funds are allocated to Nejo. This gives us more than just the ability to launch the first phase of exploration and the initial diamond drilling campaign. While drilling is underway, we’ll also mobilise equipment for further infill and extensional trenching, and deploy a fixed-wing aircraft for geophysical surveys.
Access to capital is key for project development. Beyond Nejo, we’re also recommencing exploration at the Oelsner Project, which is focused on tin, tantalum, and rubidium. So, shareholders can expect a strong news flow moving forward. We're eager to get back into exploration now that corporate matters have been resolved.
Proactive: Exploration at Nejo kicked off a couple of weeks ago. How are things progressing?
Gino D’Anna: Very well. We've been in the field for about two and a half weeks and will likely remain there another two weeks. It's important since this is our first exploration campaign on the asset. We've been meeting with local community elders and regional administration to ensure broad support for our activities.
Having time in the field is critical as we prepare to execute the maiden drilling campaign. We've benefited from access to historical exploration data, and the team has worked tirelessly to digitise and assess this information. That effort has supported early design of the drill campaign and provided valuable insight into the broader exploration program, which will continue through 2026.
Proactive: Quite a bit happening in the last few weeks of the year. We'll look forward to seeing you again on board. This was Askari Metals Executive Director Gino D’Anna. Thank you so much.
Gino D’Anna: Thank you as well.