Work aims toward a future JORC resource; timeline not disclosed

Askari Metals Ltd said on Friday it has secured commitments from existing shareholders and new investors to raise A$1.15 million ($760,000) to fund work at its new gold project in Ethiopia.

The funds will allow the company to launch a first-phase drilling program of 3,000-5,000 metres at its Nejo project, targeting previously identified prospects at Guji, Komto 1 and Komto 2.

The program is the first step in a broader plan to drill more than 20,000 metres and to map and sample soils on additional targets across the site.

"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," Executive Director Gino D'Anna said. A JORC-compliant resource estimate is a key step in showing a project's economic viability to investors.

Ethiopia, which holds more than 500 tonnes of gold reserves, has seen growing interest from mining companies. Several gold mining projects are advancing, including Tulu Kapi and Kurmuk, and the country opened its first gold mine since 1994 in November 2024. Askari did not say when it expects to complete the resource estimate.