Askari Metals Secures Strategic Gold Portfolio in Ethiopia’s Adola Belt

Strategic Acquisition Expands Askari’s African Footprint

Askari Metals Limited (ASX: AS2) has taken a significant step in expanding its African exploration portfolio by acquiring 100% of Rift Valley Metals Pty Ltd. This acquisition grants Askari control over a substantial 460 square kilometre gold project portfolio within the Adola Greenstone Belt of southern Ethiopia, a region renowned for its rich mineral endowment yet still underexplored by modern standards.

The Adola Greenstone Belt forms part of the Arabian-Nubian Shield, a vast geological province stretching across northeast Africa and the Arabian Peninsula. This belt hosts several multi-million-ounce gold deposits, including Ethiopia’s only modern gold mines at Lega Dembi and Sakaro, which have collectively produced over 3 million ounces of gold to date. Askari’s newly acquired projects, Sakaro, Sakaro West, Lega Dembi South, Megado, and Wayu Boda, are strategically positioned along strike from these established deposits, offering a compelling first mover advantage.

Geological Potential and Historical Exploration Highlights

The Adola Greenstone Belt is characterized by structurally controlled, high-grade epithermal gold mineralization hosted within quartz veins and shear zones. Despite its historic gold production, the belt has seen limited modern exploration, leaving substantial discovery potential untapped. Notably, historic work by Alecto Minerals near the Wayu Boda project recorded rock chip gold grades as high as 47 grams per tonne and trench results including 14 metres at 0.4 g/t Au with higher-grade intervals.

Askari’s exploration strategy will leverage this geological setting, commencing with high-resolution remote sensing and detailed field reconnaissance to identify and prioritise drill targets. The company’s Chief Project and Exploration Manager for Africa, Cliff Fitzhenry, brings relevant expertise to advance these projects efficiently.

Deal Structure and Financial Considerations

The acquisition terms include an initial cash payment of AUD 200,000 and the issuance of shares valued at AUD 200,000, subject to a 12-month escrow. Deferred consideration of up to AUD 200,000 is contingent on exploration milestones involving rock sample assays and trench results, payable in a mix of cash and shares. Additionally, Askari will pay AUD 150,000 on the 12-month anniversary of completion and grant a 1% net smelter royalty on the exploration licences, with an option to buy back the royalty for AUD 1 million.

This structured approach aligns vendor incentives with exploration success while managing Askari’s capital deployment prudently. It also reflects confidence in the project’s potential to deliver significant assay results that justify further investment.

Ethiopia’s Mining Jurisdiction and Market Context

Ethiopia is increasingly recognised as a pro-mining jurisdiction with a modern legal framework designed to attract foreign investment. Major mining companies such as Newmont, Rio Tinto, and BHP have established a presence, underscoring the country’s resource potential and regulatory stability. The presence of large-scale projects like the 3.4 million ounce Kurmuk and 1.7 million ounce Tulu Kapi gold deposits further validates the region’s prospectivity.

With gold prices hovering near record highs above US$3,300 per ounce, Askari’s timing to expand into this frontier gold belt is strategically sound. The company’s focus on assembling a tier-1 gold portfolio in Ethiopia could position it favourably to capitalise on both exploration success and the supportive investment climate.

Looking Ahead: Exploration and Growth Prospects

Askari is actively reviewing additional advanced gold projects within Ethiopia, signalling an ambition to broaden its footprint beyond the current acquisition. The company’s disciplined, low-cost exploration approach aims to rapidly identify high-potential drill targets, with initial work including satellite imagery analysis and on-ground mapping and sampling.

While the acquisition does not immediately impact production or revenues, it marks a pivotal step in Askari’s evolution from a regional explorer to a significant player in one of Africa’s most promising gold provinces. Investors will be watching closely for assay results and milestone achievements that could unlock further value.