Askari Metals has secured funding of AU$1.15 million to fund its maiden drilling program at the Nejo copper and gold project in Ethiopia.
The company will issue 115 million new shares at 1 cent per share. Investors will also receive two free attaching options, subject to shareholder approval.
Askari will use approximately AU$800,000 towards its maiden drilling campaign at the Nejo project. The remaining funds will be used for infrastructure, debt repayment and working capital.
Askari executive director Gino D’Anna said the company is well funded to execute on its exploration and development strategy across its assets in Ethiopia and Namibia.
“Our focus is on exploration and development in Southern Africa where we benefit from our early entry and an experienced team providing a clear first mover advantage.
“The advanced nature of Nejo represents a true flagship project for our company with a clear pathway to value-creation through systematic exploration, designed to progress towards a significant potential JORC (2012) mineral resource.”
The company said it has identified significant high-grade gold and copper mineralisation in the Nejo project that has not been explored using modern techniques.
With funds raised from the placement, Askari will begin drilling the Guji, Komto 1 and Komto 2 prospects.
This initial drilling program is part of a broader expansion strategy that will see the company drill more than 20,000 metres in a phased approach.
Askari’s maiden regional exploration program is underway across the Guji-Gudeya and Guliso Gold Trends, which covers a cumulative strike length of more than 18 kilometres.
The company will also progress its copper-focused exploration at the Katta target in the northwest section of Nejo.
The exploration program is aimed at confirming the nature of the mineralisation and validating previous exploration, which identified significant high-grade shallow copper mineralisation.
