Askari Metals’ $1.6M Raise Highlights Risks and Rewards in African Exploration
Askari Metals has successfully closed an oversubscribed rights issue raising approximately $1.6 million to accelerate exploration at its promising Nejo Gold and Copper Project in Ethiopia and the Uis Project in Namibia.
- Oversubscribed 1-for-3 rights issue raising ~$1.6 million
- Full entitlement uptake by Executive Director and Chairman
- Maiden ~3,000m drilling program planned at Nejo Project
- Exploration to recommence at Uis Project targeting rare metals
- Focus on building a Tier-1 African gold and copper portfolio
Strong Shareholder Support Fuels Exploration Ambitions
Askari Metals Limited (ASX, AS2) has successfully completed a non-renounceable entitlement offer, raising approximately $1.6 million in an oversubscribed 1-for-3 rights issue. The strong uptake, including full participation by Executive Director Gino D’Anna and Chairman Robert Downey, signals robust shareholder confidence in the company’s strategic direction and African exploration projects.
The funds will underpin a maiden drilling campaign and further exploration activities at Askari’s flagship Nejo Gold and Copper Project in Ethiopia, as well as the recommencement of exploration at the Uis Project in Namibia. Both projects are situated in highly prospective mineral belts with significant historical data but limited modern systematic exploration.
Nejo Project, A District-Scale Opportunity on the Arabian-Nubian Shield
Located on the Arabian-Nubian Shield, one of the world’s last underexplored mineral-rich frontiers, the Nejo Project covers an expansive 1,174 square kilometres in central western Ethiopia. The project boasts multiple high-priority targets along a 60-kilometre prospective strike length, including Guji, Komto 1, and Komto 2, where historic drilling has identified high-grade gold and copper mineralisation.
Askari plans a ~3,000-metre maiden drilling program aimed at confirming historical results, extending known mineralisation, and systematically exploring drill-ready targets. The project’s proximity to established mines such as the 1.7-million-ounce Tulu Kapi and 3.4-million-ounce Kurmuk mines further underscores its geological potential.
Uis Project, Reviving Rare Metal Exploration in Namibia
In Namibia, Askari is set to resume exploration at the Uis Project, located near the operating Uis Tin Mine. The project area hosts significant pegmatites rich in tin, tantalum, rubidium, and lithium. Previous trenching campaigns have yielded promising assay results, and the company aims to build on this foundation with renewed drilling and sampling efforts.
The Uis Project’s strategic location near the deep-water port of Walvis Bay and along well-serviced roads enhances its logistical appeal for future development.
Strategic Vision and Next Steps
Askari’s leadership emphasizes a clear pathway to value creation through systematic exploration designed to advance towards a JORC-compliant mineral resource estimate. The company’s African-focused strategy leverages early entry advantages and a seasoned technical team to unlock the potential of these underexplored mineral belts.
With funds secured and exploration activities ramping up, Askari is poised to deliver critical assay results and drilling updates in the coming months, which will be closely watched by investors and analysts alike.
Bottom Line?
Askari Metals’ oversubscribed capital raise sets the stage for a pivotal exploration phase that could redefine its standing in African mineral resources.
Questions in the middle?
- When can investors expect initial assay results from the Nejo drilling program?
- What are the potential timelines and milestones for advancing the Uis Project?
- How might evolving commodity prices impact Askari’s exploration and development plans?
