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

A Strategic Move into Ethiopia’s Gold Frontier

Askari Metals has taken a decisive step to expand its African footprint by acquiring 100% ownership of a premium gold project portfolio in the Adola Greenstone Belt of southern Ethiopia. This acquisition, secured through a binding agreement with Rift Valley Resources, grants Askari control over five projects spanning approximately 460 square kilometres within one of the Arabian-Nubian Shield’s most promising yet underexplored mineral belts.

The Adola Greenstone Belt is renowned for hosting Ethiopia’s only mechanised gold mines, including the Lega Dembi and Sakaro operations, which have collectively produced over three million ounces of gold. Despite this, the region remains relatively underexplored by modern standards, offering Askari a significant first mover advantage in a jurisdiction that actively encourages foreign mining investment.

Neighbouring Multi-Million-Ounce Deposits and High-Grade Potential

The acquired projects are strategically located adjacent to major gold deposits. For instance, the Lega Dembi South and Sakaro projects border mines with historic production exceeding 3 million ounces. The portfolio also includes greenfields and brownfields tenements such as Sakaro West, Megado, and Wayu Boda, the latter boasting historic rock chip assays up to 47 grams per tonne gold and trench results indicating significant mineralisation.

This proximity to known deposits, combined with encouraging historic exploration results, underpins Askari’s confidence in the portfolio’s exceptional discovery potential. The Arabian-Nubian Shield itself is a vast, largely underexplored geological province that hosts numerous Tier 1 gold and copper deposits across countries like Egypt, Saudi Arabia, and Sudan, further highlighting the strategic value of Askari’s entry into this region.

Deal Structure and Future Milestones

The acquisition deal includes an initial cash payment of AUD 200,000 and an equivalent value in shares, which will be escrowed for 12 months. Deferred consideration of AUD 200,000 is contingent on the company announcing significant assay results from rock samples and trenching, with payments split between cash and shares. A further AUD 150,000 cash payment is scheduled 12 months post-completion. Additionally, the vendor will receive a 1% net smelter royalty on the exploration licences, which Askari retains the right to buy back for AUD 1 million.

This milestone-based payment structure aligns vendor interests with exploration success, while providing Askari with a manageable capital outlay as it advances its exploration programs. The company is also reviewing other advanced gold projects in the region, signaling a broader strategic commitment to building a tier-1 gold portfolio in Ethiopia.

A Timely Expansion Amid Rising Gold Prices

With gold prices recently surpassing US$3,320 per ounce, Askari’s expansion into Ethiopia’s Adola Greenstone Belt comes at an opportune moment. The country’s modern legal framework and pro-mining stance offer a stable platform for exploration and development, complementing the geological promise of the region. By securing a foothold in this fertile gold belt, Askari positions itself to capitalize on both near-term exploration upside and longer-term value creation in a globally significant mineral province.