Askari Metals Revives Expired Options Ahead of Ethiopian Gold Acquisition
Askari Metals offers holders of expired AS2O options a priority issue of new options, while advancing due diligence on a promising Ethiopian gold project.
- Priority offer of 2 new options for every 1 expired AS2O option
- New options priced at 2.2 cents, expiring December 2028
- Application for ASX quotation of new options underway
- Due diligence progressing on advanced gold project in Ethiopia
- Company well funded following recent placement
Priority Options Offer Reignites Shareholder Participation
Askari Metals Limited (ASX: AS2) has announced a strategic move to re-engage holders of its expired AS2O listed options by offering a priority entitlement to subscribe for new options. Shareholders holding the expired options as of 31 October 2024 will be entitled to receive two new options for every one expired option previously held. This initiative aims to restore shareholder participation in the company’s equity upside with new options priced at 2.2 cents each and expiring on 31 December 2028.
The new options mirror the terms of a recent placement completed in November 2024, signaling consistency in Askari’s capital raising approach. The company has lodged the relevant prospectus with ASIC and plans to apply for quotation of these new options on the ASX, subject to regulatory approvals. The offer officially opened on 19 May 2025, with the expected quotation date set for early June.
Strategic Focus on African Gold Exploration
Beyond capital restructuring, Askari Metals is actively pursuing growth through an acquisition aligned with its African-focused corporate strategy. The company is currently conducting due diligence on an advanced brownfields gold exploration project in Ethiopia. This potential acquisition could significantly enhance Askari’s portfolio, complementing its existing projects in Namibia and Tanzania.
Askari’s Executive Director, Gino D’Anna, emphasized the company’s readiness to capitalize on its African expertise, highlighting that the recent placement has strengthened its financial position. The company’s broader strategy includes developing the Uis Lithium Project in Namibia and the Matemanga Uranium Project in Tanzania, both strategically located near existing mining operations and infrastructure.
Looking Ahead: Capitalising on Opportunities
The priority offer of new options not only provides a pathway for previous option holders to re-engage with Askari’s growth story but also supports the company’s funding flexibility as it advances its exploration ambitions. The timing of the offer and the ongoing due diligence suggest Askari is positioning itself to leverage emerging opportunities in the African mining sector, particularly in gold and uranium.
Investors will be watching closely as the company navigates the regulatory process for option quotation and progresses its acquisition plans. The success of these initiatives could mark a pivotal phase in Askari’s evolution from a regional explorer to a more diversified African mining entity.
Bottom Line?
Askari Metals’ option offer and Ethiopian project pursuit set the stage for a transformative growth chapter.
Questions in the middle?
- What are the specific details and potential scale of the Ethiopian gold project under due diligence?
- How will the new options issuance impact Askari’s capital structure and shareholder dilution?
- What are the key regulatory hurdles for ASX quotation of the new options and timeline risks?
