Askari Metals Ltd (ASX:AS2) has entered 2026 with a clean balance sheet after fully repaying its outstanding corporate debt, freeing up capital to accelerate exploration across its flagship gold and copper project in Ethiopia and its tin-tantalum-lithium asset in Namibia.
The company has repaid in full its Convertible Note Facility with Lawson Mining Pty Ltd and the remaining Series B Redeemable Notes, leaving Askari debt-free with no security or dilution overhang. Management said the move significantly strengthens the capital structure and allows capital to be directed squarely towards exploration activity.
With meaningful cash on hand, Askari said it is fully funded to execute its near-term exploration plans at the Nejo Gold & Copper Project in Ethiopia and the Uis Tin-Tantalum-Lithium Project in Namibia, setting up multiple potential catalysts over the coming year.
Executive director Gino D’Anna said the debt repayment “marks an important inflection point” for the company.
“We now have a clean capital structure, a strong balance sheet and the financial flexibility to execute on our growth strategy without an overhang on our securities,” D’Anna said.
“Nejo is a true flagship asset for the company, with a clear pathway toward a maiden JORC resource through systematic, staged exploration,” he added. “With drilling preparations well advanced, we are excited to commence our maiden drill program and unlock the value potential of this highly prospective gold and copper system.
“At the same time, recommencing work at Uis provides shareholders with compelling exposure to tin and critical metals at a time of strong commodity pricing and improving sector sentiment.”
Nejo project sets up maiden drilling campaign
Askari’s near-term focus is its advanced-stage Nejo Gold & Copper Project, where preparations are well advanced for a maiden drilling program targeting shallow, high-grade mineralisation.
A preliminary drill design has been completed for an initial campaign of up to 5,000 metres, forming part of a broader phased program totalling up to 20,000 metres. Drilling will initially focus on the Guji, Komto 1 and Komto 2 targets, which together define a roughly 9-kilometre mineralised corridor that runs parallel to the highly prospective Tulu Kapi Trend.
Historical drilling and trenching across these areas returned strong, shallow gold intersections but were never systematically followed up. Askari said the upcoming program is designed to validate and extend those historical results, define the geometry and continuity of mineralised zones, and advance the project toward a maiden JORC (2012) Mineral Resource Estimate.
In addition to gold, drilling will also assess the potential for copper, antimony and silver, highlighting the polymetallic upside of the system. Exploration will be supported by parallel trenching, geophysics, mapping and sampling across the broader 1,200-square-kilometre landholding.
Uis provides leverage to tin and battery metals
Alongside Nejo, Askari plans to recommence exploration at its Uis Project in Namibia, providing exposure to tin and tantalum, with additional lithium and rubidium upside.
The project sits directly along strike from the operating Uis Tin Mine and within the same geological setting. Planned near-term work includes soil and stream sediment sampling at EPL 7626, trenching across known pegmatite targets at EPL 8535, and planned reverse-circulation drilling at the OP pegmatite target within EPL 7345.
Results from previous trenching programs have already been received and are being compiled for release, setting up near-term news flow as exploration ramps up.
The Uis project is located close to infrastructure, including sealed roads and the port of Walvis Bay, and sits near operations run by Andrada Mining Ltd.
With no debt and multiple exploration programs planned, Askari said it is positioned to deliver consistent news flow as it enters its next phase of exploration-led growth.