Askari Metals to raise funds for exploration and development of African lithium-uranium assets

Askari Metals (ASX: AS2) has received firm commitments to raise $1.37 million for the continued exploration and development of the Uis lithium project in Namibia and the expansion of its interests in Tanzania’s uranium sector.

Completion of the placement will enable Askari to restore its balance sheet and provide sufficient working capital for ongoing operational activities.

The company will also conduct a one-for-three entitlement offer on the same terms as the placement to raise up to an additional $1.075m.

Placement terms

New and existing sophisticated investors will be issued a total of 81.3 million shares priced at $0.016 each, plus a one-for-one free attaching option exercisable at $0.022 and expiring in December 2028.

Askari directors and a related party will subscribe for a total of 4.75 million shares, amounting to $76,000, as well as 4.75 million options.

GBA Capital and Peak Asset Management have been appointed joint lead managers for the raising and will receive up to 60 million options on the same terms and conditions as the placement.

BW Equities will facilitate ongoing investment and support from existing shareholders and will be issued options upon approval.

Exploration vision

Askari managing director Gino D’Anna said the raisings would help achieve the company’s vision for exploration in Africa.

“The next few months will be a busy period for our company and this funding will allow us to continue the strong momentum and further the advancement of our exploration and acquisition strategy,” he said.

“Accelerating exploration efforts at Uis supports our goal of delivering a maiden resource next year while conducting low-cost and high-impact exploration campaigns at our uranium projects.”

Askari is focused on building a district-scale uranium portfolio in southern Tanzania and is actively conducting due diligence to acquire further uranium projects in the emerging Tier 1 province.

The company is also working on a divestment strategy for its Australian exploration portfolio, which contains prospective gold, copper, rare earth elements and lithium projects.

African interests

The Uis project is located in the Cape Cross-Uis pegmatite belt of central western Namibia, within 2.5 kilometres of the Uis tin-tantalum-lithium mine operated by Andrada Mining.

Askari is also focused on the recently acquired Matemanga uranium project in southern Tanzania, located 70km south of the world-class Nyota uranium mine and the Eyasi uranium project in the country’s north.

Matemanga exhibits a significant radiometric anomaly measuring 10km by 6km, initially identified in a 2006 survey conducted by Uranex that underscored substantial potential for uranium mineralisation and limited ground-based follow-up exploration was carried out.

Re-processing of airborne geophysical data at Eyasi has revealed two discrete and linear radiometric anomalies approximately 1km in width and totalling 30km of strike, interpreted as fluvial channel systems draining from primary basement granites.