Askari Metals has repaid in full its convertible note facility with Lawson Mining, leaving it debt-free and fully-funded to execute its exploration strategy across its projects in Ethiopia and Namibia.
With a clean capital structure and strong cash position, Askari can now allocate capital into high-impact exploration across its flagship Nejo gold and copper project in Ethiopia and the Uis tin-tantalum-lithium project in Namibia.
Askari executive director Gino D’Anna said: “Repayment of all our corporate debt marks an important inflection point for Askari. We now have a clean capital structure, a strong balance sheet and the financial flexibility to execute on our growth strategy without an overhang on our securities.”
D’Anna said the company’s Nejo project is a true flagship for the company with a clear pathway toward a maiden joint ore reserves committee-compliant resource through staged exploration.
“With drilling preparations well advanced, we are excited to commence our maiden drill programme and unlock the value potential of this highly prospective gold and copper system,” he said.
“At the same time, recommencing work at Uis provides shareholders with compelling exposure to tin and critical metals at a time of strong commodity pricing and improving sector sentiment.”
Askari has completed a preliminary drill design for its maiden drilling campaign at Nejo.
The initial drilling will target near-surface, high-grade mineralisation at the Guji, Komto 1 and Komto 2 targets.
Historical drilling and trenching at these targets have returned strong, shallow gold intersections that were never followed up.
Initial drilling will focus on validating and expanding these known zones of mineralisation and testing for other metals, including copper, antimony and silver.
Meanwhile, the company will recommence exploration at the Uis project, which provides exposure to high-grade tin and tantalum mineralisation, with additional lithium and rubidium upside.
Multiple near-term explorations are planned, including trenching, sampling and RC drilling.
