Askari Metals (ASX:AS2) has completed legal due diligence activities ahead of its planned acquisition of the Nejo Gold and Copper Project, after engaging with an in-country law firm in Ethiopia as part of ensuring compliance on the three licences.
The company has also been working with Hong Kong Xingxu Mining International Investment, the holder of the Nejo Project exploration licences holding several meetings with the Oromia Regional Government Office and the Federal Mining Ministry office.
In early July 2025, Askari entered into a binding share purchase agreement with Xingxu Mining to acquire its shares via $200,000 cash and $200,000 worth of shares, as well as 20 million unlisted options.
A $200,000 cash payment and the issue of $200,000 worth of shares will also be paid to the vendor upon achieving resource milestones. A further $150,000 cash payment and the issue of $150,000 worth of shares will be paid 12 months from the date of completion under the deal.
Askari, which has a market capitalisation of $4 million, says the acquisition provides an additional 1,174km2 of land, while also providing exposure in one of the world’s most mineral-rich regions, the Arabian-Nubian Shield.
The company is finalising a regional exploration program including soil and rock sampling and geological mapping ahead of maiden drilling. The program will initially target shallow gold mineralisation where previous surface trenching and drilling intersected high-grade gold.
An airborne geophysical campaign will also be completed to support an expanded exploration strategy including infill and extension trenching across the gold targets on the southern licence and field exploration campaigns.
Askari Metals is a South African-focused explorer that is developing its Uis Lithium Project in Namibia located along the Cape-Cross – Uis Pegmatite Belt of central western Namibia.
Write to Aaliyah Rogan at Mining.com.au
Images: Askari Metals
