Askari Metals Raises $750,000 at 0.8 Cents to Fund Namibia and Ethiopia Projects
Askari Metals has raised $750,000 through a placement to advance its tin, tantalum, and gold projects in Namibia and Ethiopia, positioning itself for growth in African mineral exploration.
- Placement raised $750,000 at A$0.008 per share with free attaching options
- Funds allocated to Uis Project (Namibia) and Adola Greenstone Belt Gold Projects (Ethiopia)
- Directors and related parties participating, subject to shareholder approval
- CPS Capital acted as Lead Manager for the placement
- Placement supports ongoing operations and further acquisitions in Ethiopia
Capital Raise to Accelerate African Exploration
Askari Metals Limited (ASX: AS2) has successfully secured firm commitments to raise $750,000 through a placement priced at A$0.008 per share. This capital injection comes at a pivotal moment as the company seeks to advance its exploration and development activities across key African mineral projects.
The placement includes a 1-for-1 free attaching option exercisable at 1.5 cents, expiring three years from issue, pending shareholder approval. Notably, Executive Director Gino D’Anna and related parties are participating in the raise, signaling strong insider confidence in the company’s strategic direction.
Focused Investment in Namibia and Ethiopia
The funds will primarily support the continued exploration of the Uis Project in Namibia, which is strategically located just 2.5 kilometres from the operating Uis Tin-Tantalum-Lithium Mine managed by Andrada Mining Ltd. The proximity to the deep-water port of Walvis Bay, less than 230 kilometres away, enhances the project's logistical advantages.
Alongside this, Askari is advancing its newly acquired Adola Greenstone Belt Gold Projects in Ethiopia. Covering 460 square kilometres, this acquisition positions Askari as a first mover in building a tier-1 gold portfolio in the region. The company is actively reviewing additional advanced gold projects in Ethiopia, aiming to expand its footprint and capitalize on emerging opportunities.
Strategic Use of Funds and Shareholder Engagement
The placement proceeds are earmarked for a range of activities: $200,000 towards completing the Adola acquisition, $100,000 for ongoing exploration at Uis, $75,000 for laboratory assays, and $75,000 for initial exploration of Ethiopian gold projects. Additional funds will support evaluation of further Ethiopian assets, general administration, working capital, and offer costs.
CPS Capital acted as Lead Manager for the placement, with the lead managers set to receive advisor options subject to shareholder approval. The company anticipates settlement of the placement around 7 May 2025, with shares to rank equally with existing ordinary shares.
Outlook and Market Positioning
Executive Director Gino D’Anna expressed optimism about the company’s trajectory, highlighting the placement as a catalyst for continued exploration success and strategic acquisitions. The company’s focus on tin, tantalum, and gold in politically stable African jurisdictions aligns with growing investor interest in critical minerals and precious metals.
Askari’s approach reflects a disciplined capital allocation strategy aimed at unlocking value from its existing projects while selectively pursuing new opportunities. The coming months are expected to be active, with exploration results and acquisition developments likely to shape the company’s growth narrative.
Bottom Line?
Askari Metals’ latest funding round sets the stage for accelerated exploration and strategic growth across Africa’s mineral-rich landscapes.
Questions in the middle?
- Will shareholder approval be granted for the free attaching placement options and director participation?
- What are the timelines and expected milestones for exploration results at the Uis and Adola projects?
- How will further acquisitions in Ethiopia influence Askari’s portfolio and valuation?
