Askari Metals has closed a $350,000 strategic placement with Celtic Finance Corp. to advance its growing uranium portfolio in Tanzania, shifting away from a previously planned Rights Issue.
- Raised $350,000 via strategic placement with Celtic Finance Corp.
- Funds to support expansion of uranium projects in Tanzania and lithium development in Namibia
- Acquired Matemanga and Eyasi uranium projects in Tanzania
- Rights Issue cancelled following successful placement
- Strategic investor to receive attaching and subscriber options, pending shareholder approval
Strategic Capital Injection
Askari Metals Limited (ASX: AS2) has successfully completed a $350,000 placement with Celtic Finance Corp. Pty Ltd, a single high-net-worth sophisticated investor. This strategic investment marks a pivotal step in bolstering Askari’s working capital to advance its uranium exploration and development activities in Tanzania, an emerging tier-1 uranium province.
The placement was executed through a combination of shares issued under ASX Listing Rule 7.1 and prior shareholder-approved placement capacity, with an average issue price of $0.0135 per share. In addition to the shares, the strategic investor is set to receive attaching options exercisable at $0.022, subject to shareholder approval, alongside further subscriber options.
Focused Expansion in Tanzania and Namibia
Askari’s recent acquisitions of the Matemanga Uranium Project in southern Tanzania and the Eyasi Uranium Project in the north underscore its commitment to building a district-scale uranium portfolio. Both projects are strategically located near established uranium mines, positioning Askari to capitalize on the growing demand for uranium amid the global energy transition.
Beyond uranium, the company continues to develop its Uis Lithium Project in Namibia, located near the operating Uis Tin-Tantalum-Lithium Mine. The raised funds will support ongoing exploration and development efforts across these key assets, as well as general working capital needs.
Strategic Shift from Rights Issue
Following the successful placement, Askari has decided not to proceed with the previously announced Rights Issue. This pivot reflects confidence in the current funding arrangement and the strategic investor’s support, which also opens doors to a broader network of funding parties. The company is actively conducting due diligence on additional advanced uranium projects in Tanzania, aiming to expand its footprint in this promising region.
Leadership and Future Outlook
Director Gino D’Anna expressed optimism about the company’s trajectory, highlighting the importance of securing experienced management to guide Askari through its next growth phase. The company’s focus on uranium aligns with global trends favoring nuclear energy as a low-carbon power source, potentially positioning Askari as a key player in the sector.
As Askari advances its Tanzanian uranium strategy and continues exploration in Namibia, investors will be watching closely how these developments translate into tangible value and project milestones.
Bottom Line?
Askari’s strategic funding and project acquisitions set the stage for accelerated growth in a high-potential uranium province.
Questions in the middle?
- What are the timelines and milestones for the newly acquired Tanzanian uranium projects?
- How will the company manage risks associated with reliance on a single strategic investor?
- What is the outlook for securing additional uranium assets in Tanzania amid competitive interest?