Askari Nets A$700K Selling Australian Gold Assets to Fund African Exploration
Askari Metals has agreed to sell its Australian gold assets to Forrestania Resources for A$700,000, enabling a strategic pivot towards its promising African exploration projects.
- Sale of First Western Gold Pty Ltd including Burracoppin Gold Project
- Consideration of A$700,000 split between cash and Forrestania shares
- Funds to support Nejo Gold and Copper Project exploration in Ethiopia
- Avoidance of dilutive capital raising through asset sale
- Maiden drilling at Nejo planned for November 2025
Strategic Divestment in Australia
Askari Metals Limited (ASX – AS2) has formalised a significant step in its corporate strategy by signing a binding Share Sale Agreement with Forrestania Resources Limited (ASX – FRS) to divest its wholly owned subsidiary First Western Gold Pty Ltd. This subsidiary holds seven exploration licenses and one application in Western Australia, including the Burracoppin Gold Project, which boasts a JORC-compliant mineral resource estimate of approximately 82,700 ounces of gold.
The total consideration for the transaction is A$700,000, comprising A$250,000 in cash and A$450,000 in Forrestania shares. This deal is expected to settle by the end of September 2025, subject to standard due diligence and regulatory approvals.
Refocusing on African Opportunities
Executive Director Gino D’Anna highlighted that the sale aligns perfectly with Askari’s strategic ambition to concentrate on its African exploration and development projects. The proceeds will provide immediate funding to advance the Nejo Gold and Copper Project in Ethiopia, a district-scale asset with promising high-grade gold and copper mineralisation within the Arabian-Nubian Shield, one of the world’s most mineral-rich yet underexplored regions.
Askari plans to commence initial exploration activities at Nejo ahead of a maiden drilling campaign scheduled for November 2025. This accelerated timeline is supported by the company’s large landholding, multiple high-grade targets, and relatively low geological risk, all of which underpin a pathway toward defining a JORC-compliant resource.
Avoiding Dilution and Enhancing Flexibility
Crucially, the transaction allows Askari to sidestep a potentially dilutive capital raising, preserving shareholder value while securing funds for its African projects. Additionally, Forrestania will receive options in Askari Metals, providing them with equity-linked upside exposure to Askari’s African assets and offering Askari a potential future funding avenue.
Meanwhile, Askari continues to develop its Uis Lithium Project in Namibia, where recent drilling and trenching have intersected rare metal pegmatites and high-grade tin, tantalum, rubidium, and lithium mineralisation. The company’s African portfolio thus spans critical commodities with strong market demand.
Looking Ahead
With the Burracoppin Gold Project now under Forrestania’s stewardship, Askari Metals is poised to intensify its exploration efforts in Africa, leveraging its focused strategy and fresh capital. The coming months will be pivotal as the company embarks on its maiden drilling at Nejo and advances its rare metals exploration in Namibia.
Bottom Line?
Askari’s Australian exit clears the way for a bold African exploration push, with maiden drilling imminent.
Questions in the middle?
- Will Forrestania accelerate development of the Burracoppin Gold Project post-acquisition?
- How will Askari’s maiden drilling results at Nejo influence its valuation and funding needs?
- What are the prospects for securing further investment or partnerships to expand Askari’s African footprint?
