Askari Metals (ASX:AS2) has executed a binding subscription agreement with Celtic Finance Corp, a single high-net worth sophisticated investor, to raise a further $350,000 at an average issue price of $0.0135 per share.
The placement is expected to be settled on or about 10 January 2025 and will rank equally with existing fully paid ordinary shares.
The placement with the strategic investor will provide Askari further capital to advance its Tanzanian uranium strategy and enables the company to access a broader network of funding parties.
Askari says the strategic investor will receive a one-for-one free attaching option exercisable at $0.022 expiring on 31 December 2028 on those shares subscribed for. These will be issued subject to shareholder approval.
The strategic investor will also receive a further 10 million subscriber options, subject to shareholder approval, on the same terms as the attaching options.
The funds raised will be allocated towards the company’s progressive expansion into in-demand uranium in Tanzania, continued exploration and development of the Uis Lithium Project in Namibia as well as general working capital.
The company has recently acquired the Matemanga Uranium Project in Southern Tanzania and the Eyasi Uranium Project in Northern Tanzania, through a direct application process.
The Matemanga project is strategically located less than 70km south of the Nyota Uranium Mine. The Matemanga project exhibits a significant radiometric anomaly spanning 10km x 6km, initially identified in a 2006 survey conducted by Uranex.
While this survey underscored substantial potential for uranium mineralisation, limited ground-based exploration was undertaken at the time, as Uranex prioritised other areas.
Reprocessing of airborne geophysical data at the Eyasi project has revealed two discrete, linear radiometric anomalies approximately 1km in width and totalling 30km of strike. Radiometric anomalies are interpreted to be defining fluvial channel systems which are draining from primary basement granites.
Askari Metals is actively engaged in due diligence to acquire further uranium projects in this emerging tier-one uranium province and is looking to build a district scale uranium portfolio in southern Tanzania.
The company is also working towards developing an appropriate divestment strategy for its Australian exploration portfolio, which contains prospective gold, copper, rare earths, and lithium projects.
Write to Adam Orlando at Mining.com.au
Images: Askari
