Legal Certainty Secured, But Can Askari Deliver on Nejo’s High-Grade Potential?
Askari Metals has confirmed the legal validity of its Nejo Gold and Copper Project licences in Ethiopia, paving the way for a comprehensive exploration campaign in a highly prospective mineral region.
- Legal due diligence confirms three valid exploration licences for Nejo project
- Strong government and local support secured in Oromia and federal authorities
- Plans underway for sampling, trenching, drilling, and airborne geophysics
- Nejo project offers district-scale tenure near significant gold mines
- Transaction subject to shareholder approval expected in September 2025
Legal Clearance Secures Strategic Ethiopian Acquisition
Askari Metals Limited (ASX, AS2) has successfully completed legal due diligence on its acquisition of the Nejo Gold and Copper Project in Central-Western Ethiopia. The review, conducted by an internationally recognised law firm specialising in Ethiopian mining law, confirmed that all three exploration licences covering approximately 1,174 square kilometres are valid, in good standing, and free from overlapping claims. This legal green light removes a significant hurdle for Askari as it seeks to expand its footprint in the mineral-rich Arabian-Nubian Shield.
Robust Government and Community Engagement
Beyond legal validation, Askari has engaged extensively with both Oromia Regional and Federal Mining Authorities, securing strong local and governmental support. These positive interactions reinforce the project’s legitimacy and Askari’s ability to deploy capital and resources for exploration and development. The company emphasises its commitment to environmental, social, and governance (ESG) principles, focusing on local stakeholder alignment and building an in-country technical team to ensure sustainable progress.
Exploration Plans Target High-Grade Mineralisation
With due diligence complete, Askari is poised to launch a comprehensive exploration program. This includes soil and rock sampling, geological mapping, trenching, and a maiden drilling campaign targeting high-grade shallow gold mineralisation identified in previous work. An airborne geophysical survey is also planned to refine and expand target areas, including high-grade copper prospects in the northern licence area. The Nejo project’s proximity to the 1.7 million ounce Tulu Kapi Mine and the 3.4 million ounce Kurmuk Mine underlines its potential as a district-scale asset.
Strategic Partnerships and Funding Prospects
Askari’s acquisition structure involves collaboration with Xingxu Mining International Investment Co., Ltd, the current licence holder, and its parent company Shining Star International Group. Shining Star’s experience developing Angola’s first industrial copper mine and its substantial investment capacity could provide valuable financial and operational support as Nejo advances through resource definition and feasibility stages. This strategic relationship enhances Askari’s capacity to fast-track the project towards a potential maiden JORC-compliant resource.
Next Steps and Shareholder Approval
The transaction remains subject to shareholder approval, with a general meeting scheduled for September 2025. Pending approval, Askari plans to commence exploration activities following the rainy season, contingent on government permits for equipment importation. The company also cautions investors to rely on official announcements amid unsubstantiated online commentary, underscoring its transparent communication approach.
Bottom Line?
Askari’s cleared path in Ethiopia sets the stage for a potentially transformative exploration campaign in a globally significant mineral province.
Questions in the middle?
- Will shareholder approval proceed smoothly given the strategic importance of the Nejo acquisition?
- How quickly can Askari secure government permits to commence exploration activities post-rainy season?
- What scale of resource might the maiden JORC-compliant estimate reveal, and how will it impact Askari’s valuation?
