Askari Metals Acquires Nejo Gold Project with 10 High-Grade Targets in Ethiopia

Strategic Acquisition in a Globally Significant Gold Belt

Askari Metals Limited (ASX:AS2) has taken a decisive step in expanding its African footprint by acquiring 100% ownership of the Nejo Gold Project, an advanced brownfields exploration asset located in Central Western Ethiopia. The project covers a substantial 1,174 square kilometres on the Arabian-Nubian Shield, a geological region renowned for hosting some of the world's most significant gold and copper deposits.

This acquisition is notable not only for its scale but also for its location amidst established mines such as the 3.4-million-ounce Kurmuk Mine operated by Allied Gold and the 1.7-million-ounce Tulu Kapi Mine owned by Kefi Gold + Copper. Nejo's tenements surround Tulu Kapi and include mineralised extensions of its system, offering Askari a compelling opportunity to uncover a major deposit in a proven district.

High-Grade Historical Results and Exploration Upside

The Nejo Gold Project boasts a rich exploration history, with over 60 kilometres of prospective strike length along the Tulu Dimtu Shear Belt. Historical drilling and trenching have identified ten high-priority gold targets, with impressive intercepts such as 7.1 metres at 30.3 grams per tonne gold at the Dina target and 14.2 metres at 8.18 grams per tonne at Soyoma. Visible gold has also been observed in drill cores, underscoring the project's potential.

Despite these encouraging results, much of the project remains underexplored, with limited follow-up on several targets. Askari plans to leverage this extensive historical data by conducting systematic confirmatory drilling, mapping, and sampling to validate and upgrade these results to JORC (2012) standards. This approach aims to fast-track the definition of a maiden mineral resource estimate, a critical milestone for advancing the project towards development.

Transaction Terms and Financial Strategy

The acquisition consideration includes an upfront payment of A$200,000 in cash and A$200,000 in shares, alongside 20 million unlisted options exercisable at 6 cents over three years. Deferred payments totaling A$550,000 in cash and shares are contingent upon achieving specific JORC resource milestones, reflecting Askari's confidence in the project's potential. Additionally, a 1% gross revenue royalty capped at A$7 million provides a balanced risk-sharing mechanism with the vendors.

To fund ongoing exploration at Nejo and other projects across Africa and Australia, Askari intends to undertake a capital raising. The proposed 12-month exploration budget allocates A$525,000 to Nejo, reflecting its priority status within the company's portfolio.

Positioning for Growth in a Tier-1 Jurisdiction

Executive Director Gino D’Anna highlighted the transformational nature of the acquisition, emphasizing Ethiopia's emergence as a Tier-1 mining jurisdiction. With major regional projects demonstrating robust production and exploration success, Askari is well-positioned to capitalize on the region's mineral wealth. The company's strategy focuses on building a strong, locally integrated presence and delivering meaningful exploration milestones that could unlock significant shareholder value.

While the historical exploration data provides a strong foundation, Askari acknowledges the need for independent validation and compliance with modern reporting standards. The company's planned exploration programs will address these requirements, aiming to confirm the project's scale and grade potential.