Askari Metals (ASX: AS2) has broadened its reach in Africa with the acquisition of Hong Kong-based Xingxu Mining International Investment Co and its advanced Nejo gold project, located in central-western Ethiopia. Askari Metals is an Australian-based mineral exploration company focused on discovering and developing economically viable mineral resources. The company’s portfolio includes lithium, gold, copper, and other base metal projects.
The deal grants Askari access to a brownfields gold project boasting substantial resource potential within the Arabian-Nubian Shield (ANS), a region renowned for multi-million-ounce discoveries across several countries. The initial consideration involves $200,000 in cash and $200,000 in Askari shares to Xingxu Mining, along with 20 million unlisted options. Deferred consideration includes cash and share payments within the first 12 months, plus further payments upon announcement of a maiden resource estimate. Askari will also pay a 1% gross revenue royalty to Xingxu Mining from gold concentrates produced at Nejo.
The Nejo project consists of three exploration licences covering 1,174 square kilometres within the same Greenstone Belt as Allied Gold’s 3.4 million ounce Kurmuk mine. It also includes mineralised extensions of the 1.7Moz Tulu Kapi project owned by Kefi Gold + Copper. Executive director Gino D’Anna highlighted the acquisition as an opportunity to establish the company in one of Africa’s most promising gold regions, emphasizing the project’s scale, high-grade gold potential, and proximity to major gold operations.
Askari intends to conduct confirmatory drilling, rock chip sampling, trenching, and mapping to validate historical results at Nejo and accelerate the path to resource estimation. This acquisition follows Askari’s move in April to acquire Rift Valley Metals, further solidifying its presence in the underexplored southern segment of the ANS.
