Askari Metals (ASX:AS2) is seeking to establish a potential joint venture (JV) partnership with ‘deep-rooted’ strategic international end users as part of its plan to spin out several Australian assets into a newly listed company.
Speaking to Mining.com.au, Askari Metals Executive Director Gino D’Anna says this move by Askari, which has a $20.33 million market capitalisation, is being undertaken as part of its strategy to monetise several of its assets in Australia, including its copper, gold, and rare earths projects.
“One of the key strategies of the company is to focus on how to monetise its other assets in Australia, being the copper, gold, and rare earth projects.
One of the strategic objectives of the company with those projects is to look at spinning those out into a newly listed company. And that’s something that we hope to sort of gain traction and communicate to shareholders during this coming quarter end of 30 September.
“One of the strategic objectives of the company with those projects is to look at spinning those out into a newly listed company”
We are in the midst of having some open discussions with some groups around potential joint ventures and non-diluted financing structures on some of our assets, particularly the stuff in the Pilbara.”
D’Anna tells this news service Askari is also open to the idea of forming a potential JV alongside other junior explorers currently operating within proximity to its Red Peak Rare Earth Project, where the company has completed an ‘extensive’ soil sampling program, as announced today (26 July 2023).
“So north of us is Krakatoa and south of us is another junior explorer that’s also looking at the same style of mineralisation. So definitely from a consolidation perspective it makes sense. This whole region of the Gascoyne has become kind of really important over the last 12 months from a rare earth perspective, given that there’s been a number of new discoveries being made.
So there’s been a lot of attention, a lot of focus given to this region from an exploration sense, but certainly from our perspective we’re still very much in kind of like a driver’s position as far as knowing what our mineralisation hosts are, what controls that mineralisation, and how quickly we can scale that up as well.
“This whole region of the Gascoyne has become kind of really important over the last 12 months from a rare earth perspective”
I think it makes sense and I think it makes sense in most instances, certainly from the perspective of it’s never a natural thing where you see 3 operations all operating side by side independently of each other.”
Whilst the company remains focused on achieving these long term goals, D’Anna adds it is well-funded to maintain its exploration momentum across its portfolio following a capital raise in April and a strategic placement in May.
The drilling campaign was designed to uncover and investigate numerous ‘highly anomalous’ areas highlighted from previous field exploration and sampling completed at the project in January 2022.
As a result, drilling is expected to begin at Red Peak once all outstanding results from the current field campaign are returned.
“The company is still very well funded to undertake its exploration activities and still continue to deliver real value to shareholders through tangible results.”
Meanwhile, D’Anna adds the company is equally active at its Namibian assets, where it has recently uncovered a “significant” corridor of mineralisation estimated to be 15km in length along strike, and about 5km wide.
D’Anna notes this discovery represents a “very significant opportunity” for Askari, and could be the ‘major’ lithium discovery it has been searching for within the “very mining friendly region”.
“We’ve identified a very significant corridor of mineralisation that runs for about 15km along strike and is about 5km wide. So a very significant opportunity for the company exists there to identify a major lithium discovery in an area which is very well serviced from an infrastructure perspective, and is very mining friendly, being based in Namibia, low security, low geopolitical risk, very mining friendly government.”
It is also in this region that the company has completed up to 3 phases of reverse circulation (RC) drilling, which is reported to have produced at least 6,500 samples, D’Anna says.
Therefore, as a result of these latest achievements across its local and international tenements, D’Anna announces the company is ‘very excited’ at what the future holds.
“We’re pretty excited by what the future holds. The next 6 months are going to be very busy for the company, particularly as we look to do a step change and accelerate the exploration in Namibia, but also as we look to get more aggressive on our Australian lithium exploration, but also the spin out.
“We’re pretty excited by what the future holds”
Fortunately, we’re quite well funded to execute our plans, but absolutely the next six months is going to be quite an important period for us as we look to push a lot of these things into action as well.”
Askari Metals is an ASX-listed explorer with a primary focus on acquiring, exploring and developing a portfolio of ‘high-grade’ battery and precious metal projects across Namibia, Western Australia, the Northern Territory, and New South Wales.
The company’s Red Peak project is located in Western Australia’s Gascoyne region and covers a land holding of more than 350km-square. The project is considered poorly explored and ‘highly prospective’ for lithium, base metals, uranium, and rare earth elements (REE) mineralisation.
Askari Metals had $3 million cash at hand with no debt as of 31 March 2023, as stated in its latest quarterly release.
Askari was the name given to local soldiers serving in the armies of the European colonial powers in Africa.
Write to Adam Drought at Mining.com.au
Images: Askari Metals Ltd