Askari Metals Launches $1.5M Rights Issue to Accelerate Ethiopian Gold-Copper Exploration
Askari Metals has announced a $1.5 million rights issue to fund a maiden drilling campaign at its Nejo Gold and Copper Project in Ethiopia, aiming to unlock significant value in a promising underexplored region.
- Non-renounceable entitlement offer to raise ~$1.5 million at $0.01 per share
- Funds directed to initial reconnaissance and maiden drilling at Nejo Gold and Copper Project
- Executive Director Gino D’Anna to fully subscribe, signaling strong confidence
- Nejo project located on prolific Arabian-Nubian Shield with high-grade gold and copper targets
- Rights issue includes two free attaching options with multi-year expiry
Rights Issue to Fuel Exploration Ambitions
Askari Metals Limited (ASX, AS2) has unveiled a non-renounceable entitlement offer aimed at raising approximately $1.5 million to accelerate exploration at its flagship Nejo Gold and Copper Project in Ethiopia. Priced attractively at one cent per share, the offer includes two free attaching options, providing shareholders with additional upside potential. Executive Director Gino D’Anna’s commitment to fully subscribe to his entitlement underscores management’s confidence in the project’s prospects.
Strategic Focus on the Arabian-Nubian Shield
The Nejo Project spans a vast 1,174 square kilometres in Central Western Ethiopia, situated within the Arabian-Nubian Shield; a geological region renowned for hosting multi-million ounce gold and copper deposits yet still considered underexplored. The project boasts ten high-priority targets with historical drilling and sampling data, but limited systematic modern exploration. Askari’s upcoming programs include an initial reconnaissance campaign starting 20 October 2025, followed by a maiden drilling program targeting key gold and copper zones at Guji, Komto 1, and Komto 2.
Building a Tier-1 African Gold Portfolio
Askari’s strategy extends beyond Nejo, aiming to develop a robust West and East African gold exploration portfolio. The company also holds interests in the Adola Greenstone Belt Gold Projects in Southern Ethiopia and the polymetallic Uis Project in Namibia. The Nejo Project’s advanced stage and district-scale potential position it as a cornerstone asset, with a clear pathway toward defining a JORC-compliant mineral resource through systematic drilling.
Support from Ethiopian Authorities and Market Partners
Recent engagement with Ethiopian mining authorities, including the Federal Ministry of Mines and the Oromia Mineral Development Authority, has secured necessary approvals and regional support, smoothing the path for exploration activities. The rights issue is being managed by CPS Capital Group Pty Ltd, reflecting a professional approach to capital raising. The inclusion of both unlisted and listed options with multi-year expiry dates offers shareholders flexibility and potential for future value creation.
Outlook and Market Implications
Askari Metals’ capital raise and exploration push come at a time when the market is keenly watching junior miners with exposure to underexplored African gold and copper provinces. Success at Nejo could significantly enhance the company’s valuation and attract further investment. However, the outcomes of the drilling campaign and the uptake of the rights issue will be critical to watch in the coming months.
Bottom Line?
Askari’s $1.5 million rights issue sets the stage for a pivotal exploration phase that could redefine its standing in African gold and copper markets.
Questions in the middle?
- Will the rights issue achieve full subscription, and how will market conditions affect investor appetite?
- What initial results will the maiden drilling program at Nejo deliver, and how might they impact resource estimates?
- How will Askari balance exploration efforts across its Ethiopian and Namibian projects moving forward?
