++Askari Metals (ASX: AS2)++ has reported a strong September quarter highlighted by its expansion into Ethiopia through the acquisition of the Nejo gold and copper project, located within the Arabian-Nubian Shield—one of the world’s most prospective mineral belts.
The company also advanced its Adola Greenstone Belt projects in southern Ethiopia, and completed the sale of Australian subsidiary First Western Gold to fund its growing African exploration portfolio.
Askari subsequently announced a non-renounceable rights issue to accelerate exploration, underpinned by strong participation from major shareholders including executive director Gino D’Anna.
Nejo Project Anchors Ethiopian Portfolio
Askari finalised a binding agreement during the quarter to acquire the 1,174-square-kilometre Nejo gold and copper project in central-western Ethiopia.
The project surrounds the 1.7-million-ounce Tulu Kapi mine, and lies along strike from the 3.4-million-ounce Kurmuk deposit—giving the company exposure to a proven mineral corridor with more than 60 kilometres of prospective strike.
Extensive historical datasets include trenching, drilling, and geochemical surveys confirming high-grade gold and copper mineralisation across two major gold corridors — the Guliso and Guji–Gudeya trends — where Askari is scheduled to begin initial drilling in the December quarter.
The company plans to test shallow, high-grade gold mineralisation at Guji–Gudeya and Guliso, along with copper-bearing zones at Katta, using a systematic approach to build a JORC-compliant mineral resource.
Expanding Presence in Adola Greenstone Belt
The Nejo acquisition complements Askari’s existing 460 sq km Adola Greenstone Belt projects adjacent to the Lega Dembi and Sakaro gold mines in southern Ethiopia, which together have produced more than 3Moz of gold.
Preparations are under way for reconnaissance soil and rock sampling, mapping, and structural interpretation to identify high-grade gold targets across underexplored zones.
The Adola region represents one of the most geologically fertile but least explored sectors of the Arabian-Nubian Shield, offering strong potential for additional discoveries.
Askari is working closely with the Ethiopian Federal Ministry of Mines and the Oromia Mineral Development Authority (OMDA), both of which have formally endorsed the Nejo transaction and confirmed ongoing regional support.
Corporate Transactions and Strategic Funding
Post-quarter, Askari launched a one-for-three non-renounceable rights issue priced at $0.01 per share, with two free-attaching options, with funds to go toward exploration at Nejo and ongoing work in Namibia, where the company is advancing its Uis lithium project.
The company also completed the sale of First Western Gold — holder of the Burracoppin gold project in Western Australia — to ++Forrestania Resources (ASX: FRS)++ for $850,000, comprising $250,000 in cash and $600,000 in FRS shares.
The divestment sharpens Askari’s focus on its African gold, copper and lithium assets, aligning the portfolio around high-impact projects with near-term development potential.
Askari will apply proceeds from the transaction on exploration at Nejo and Uis, ensuring a fully funded start to the company’s upcoming Ethiopian field campaign.
Operational Discipline and Funding Position
Askari continued its cost-optimisation program during the quarter to maximise capital allocation toward exploration.
Mr D’Anna said Askari’s progress in Ethiopia demonstrates the strength of its technical and operational foundation.
“As a company, we have continued to deliver on our strategic vision to build a leading African-focused gold and copper exploration business,” he said.
“Through systematic exploration and disciplined execution, we will unlock the potential of our projects and demonstrate the strength of our first-mover advantage.”
