Askari Metals Turns Focus to African Projects after Finalising Sale of Gold Subsidiary

Askari Metals (ASX: AS2) has completed the $700,000 sale of its Australian subsidiary First Western Gold (FWG) to Forrestania Resources (ASX: FRS).

The deal, which the two companies announced in mid-September, aligns with Askari’s strategy of focusing on its large African exploration projects.

The divestment of seven exploration licenses and an exploration license application – including the 82,700-ounce Burracopppin gold project – will provide Askari with the funds to complete its acquisition of the Nejo project in Ethiopia, where it plans to commence initial exploration in November 2025.

African Projects Focus

Nejo covers 1,174 square kilometres across the mineral-rich Arabian-Nubian Shield region in central-western Ethiopia.

Askari executive director Gino D’Anna said the sale was confirmation of the company’s focus on its African gold, copper, and rare metal projects.

“The timing of the disposal also aligns perfectly with the current record high gold price, and means that Askari is able to avoid having to complete a dilutive capital raising,” he said.

Askari is also in an excellent position to progress its Uis lithium project in Namibia, where previous drilling and trenching has identified rare metal pegmatites as well as high-grade tin, tantalum, rubidium, and lithium within 400 sq km of Askari’s permits.

Further Funding Support

Askari announced a $1.5 million rights issue earlier this month to further support its exploration of Nejo, where historical exploration identified significant high-grade gold and copper mineralisation yet to be systematically explored using modern techniques.

Eligible shareholders on the company’s register as at 17 October 2025 will have the opportunity to acquire one new Askari share for every three shares in the company they currently hold.

The rights issue, which Mr D’Anna called a “compelling opportunity for existing shareholders to increase their investment in Askari at a pivotal time for the company,” will proceed at $0.01 per share and include two free attaching options.