Askari Metals (ASX: AS2) has secured firm commitments of A$1.15 million from new and existing sophisticated investors to fund its maiden drilling program at the advanced-stage Nejo copper and gold project in Ethiopia.
The placement introduces additional director participation and strengthens the company’s balance sheet ahead of major field mobilisation.
It will comprise the issue of 115 million new shares at A$0.01 per share, supported by a 2:1 package of free-attaching options subject to shareholder approval.
Askari will allocate approximately A$800,000 toward its maiden 3,000–5,000-metre drilling program at Nejo, with funds also directed to business establishment in Ethiopia, debt repayment, and working capital.
Nejo Drilling Program Locked In
Drilling at Nejo will initially target the Guji, Komto 1 and Komto 2 prospects, where historical trenching and drilling returned high-grade gold and copper mineralisation.
The company is planning to conduct a multi-phase program totalling more than 20,000m, supported by infill and extension trenching, ground geophysics, and systematic district-scale mapping.
Askari’s maiden regional exploration program is underway across the Guji-Gudeya and Guliso Gold Trends, which span more than 18 kilometres of cumulative strike.
The Guliso Trend includes targets at Soyoma, Dina, Chago, and South Chago, where earlier exploration identified high-grade gold mineralisation but lacked systematic follow-up.
Executive director Gino D’Anna said Askari is “well funded to execute on its exploration and development strategy” and highlighted Nejo as a “true flagship project” with a clear pathway toward a potential JORC-compliant mineral resource.
Expanding Copper Exploration at Katta
The company also continues to progress copper-focused exploration at the Katta target in the northwest section of Nejo, where historical diamond drilling by the United Nations Development Programme reported shallow, high-grade intervals.
Current work aims to validate that mineralisation and explore outcropping copper gossans that have never been drilled, with the style interpreted as potentially volcanogenic massive sulphide (VMS).
Airborne and ground-based geophysical surveys will refine the orientation of mineralised shear zones beneath thin cover across the 1,200 sq km licence.
Digitised historical datasets, including reverse circulation and diamond drill records, will feed directly into the early design of the maiden drilling campaign to confirm previous high-grade zones and extend known mineralisation.
Askari said these datasets will help connect mineralised trends across the project and identify concealed intrusions or feeders.
Experienced Executive Appointed
Askari has also strengthened its board with the appointment of experienced mining executive Martin Holland as a non-executive director.
Mr Holland brings more than 20 years of corporate, technical, and commercial experience across the African resources sector, where he has built a record of developing strong relationships between companies, projects and local stakeholders.
He is the founder and chair of Cobre (ASX: CBE), and has been involved in listing five ASX exploration companies that collectively raised more than A$300m for future-metals discovery efforts.
Askari said his appointment aligns with its accelerated African exploration strategy and will provide valuable guidance as the company advances Nejo and evaluates additional project opportunities across Ethiopia and Namibia.
Mr Holland will invest A$100,000 in the placement, while non-executive director Tim Morrison will participate with A$50,000.
