Askari Plans Up to 20,000 Metres Drilling After Achieving Debt-Free Status
Askari Metals has wiped its debt slate clean and is gearing up for an ambitious exploration campaign at its flagship Nejo Gold & Copper Project in Ethiopia and the Uis Tin-Tantalum-Lithium Project in Namibia.
- Full repayment of convertible and redeemable notes achieved
- Debt-free balance sheet strengthens financial flexibility
- Up to 20,000 metres drilling planned at Nejo targeting high-grade gold
- Exploration restart at Uis focuses on tin, tantalum, lithium, and rubidium
- Strong cash position supports accelerated growth strategy
Debt-Free Milestone Unlocks Growth Potential
Askari Metals Limited (ASX – AS2) has marked a significant corporate milestone by fully repaying its Convertible Note Facility with Lawson Mining Pty Ltd and extinguishing its Series B Redeemable Notes. This achievement leaves the company with a clean capital structure free from debt or security overhang, a rare and enviable position in the junior mining sector.
Executive Director Gino D’Anna highlighted that this financial reset provides Askari with the flexibility to focus capital on exploration rather than servicing debt. The company’s strengthened balance sheet and meaningful cash reserves set the stage for an aggressive push to unlock value from its portfolio of critical metals and gold assets.
Nejo Project – A Flagship Asset Ready for Discovery
At the heart of Askari’s growth strategy is the Nejo Gold & Copper Project in Ethiopia. Sitting on a substantial 1,200 square kilometre landholding adjacent to established gold mines, Nejo offers a compelling exploration opportunity. The company plans a phased drilling program totalling up to 20,000 metres, beginning with an initial 5,000-metre campaign focused on shallow, high-grade gold mineralisation.
The drilling will target the Guji, Komto 1, and Komto 2 zones, which form a continuous 9-kilometre mineralised corridor parallel to the prolific Tulu Kapi Trend. Historical results have shown promising gold intersections, but these have not been systematically followed up until now. The upcoming program aims to validate these results and advance toward a maiden JORC-compliant mineral resource estimate, while also testing for copper, antimony, and silver to enhance the project’s polymetallic potential.
Uis Project – Strategic Exposure to Critical Metals
Simultaneously, Askari is reigniting exploration at its Uis Project in Namibia, a region known for high-grade tin and tantalum mineralisation, with additional lithium and rubidium upside. The project lies directly along strike from the operating Uis Tin Mine, positioning Askari to benefit from the current robust tin prices and growing demand for battery metals.
Exploration activities planned include soil and stream sediment sampling, trenching across pegmatite targets, and reverse circulation drilling at key prospects. Early results from previous trenching are being compiled, promising near-term news flow as the company ramps up its efforts.
Looking Ahead – Delivering on Exploration and Value Creation
With debt behind it and a clear exploration roadmap, Askari Metals is poised to deliver a steady stream of updates that could materially enhance shareholder value. The company’s dual focus on gold-copper at Nejo and critical metals at Uis aligns well with current market dynamics, where demand for battery and strategic metals is intensifying globally.
Investors will be watching closely as drilling commences and assay results emerge, potentially unlocking new resource estimates and advancing Askari’s projects toward development milestones.
Bottom Line?
Askari’s debt-free status and robust exploration plans set the stage for a pivotal year of discovery and growth.
Questions in the middle?
- When can investors expect initial assay results from the Nejo drilling program?
- How will commodity price fluctuations, especially for tin and lithium, impact Askari’s project economics?
- What are the company’s longer-term plans for resource development and potential partnerships?
