Askari Metals Limited (ASX:AS2): Nejo Exploration Awaits Permit Approval

Aditi Sarkar

28 October 2026 03:52 PM AEDT

Askari Metals Limited (ASX:AS2): Nejo Exploration Awaits Permit Approval

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Highlights

Nejo field exploration remains dependent on a ground-disturbing permit in Ethiopia.
October updates covered government engagement and preparation for the proposed field programme.
An Adola agreement removed certain deferred payments and royalty commitments through a share issue.
FY26 accounts recorded a net loss and a limited cash position at 30 June 2026.
Funding disclosures and the next quarterly cash-flow report remain relevant operational checkpoints.

Askari Metals Limited (ASX:AS2) is an ASX-listed mineral exploration company advancing projects in Ethiopia and Namibia, including the Nejo copper-gold project and Uis polymetallic project. Its October 2026 updates placed the focus on permitting at Nejo, changes to obligations attached to its Adola interests, and the financial resources available for exploration. The company remains at the exploration stage, with field activity at Nejo dependent on regulatory authorisation.

Nejo Programme Depends on Regulatory Approval

In an announcement dated 19 October 2026, Askari Metals Limited (ASX:AS2) said exploration at Nejo remained on hold while it awaited a ground-disturbing exploration permit. The company reported progress in engagement with local communities and government stakeholders following appointments at Oromia regional and federal levels. It also described planning, logistics and mobilisation as advanced, but did not announce a permit award or a timetable for its receipt.

The proposed programme includes diamond drilling, trenching, mapping, geochemical sampling and geophysical surveys across selected copper and gold targets. Nejo covers approximately 1,200 square kilometres in Ethiopia’s Oromia region. Until approval is received, the planned work cannot produce the new field results needed to assess those targets further. The October update did not report fresh Nejo drilling results.

Adola Settlement Changes Future Commitments

A separate 15 October 2026 announcement detailed an agreement involving three vendors and Rift Valley Resources, an Askari subsidiary. Under the settlement, Askari Metals Limited (ASX:AS2) agreed to issue 3,000,000 ordinary shares at a deemed price of A$0.01 each, representing A$30,000 in consideration.

In exchange, remaining contingent obligations relating to the Adola projects were removed. These included two A$100,000 milestone payments, a deferred A$150,000 cash payment, a 1.0 per cent net smelter royalty and a A$1,000,000 royalty buy-back right. The issued shares were subject to 12 months of voluntary escrow. The issue increases shares on issue.

FY26 Loss and Cash Funding Position

For the year ended 30 June 2026, Askari Metals Limited (ASX:AS2) reported a net loss after tax of A$3,560,446, compared with A$7,144,653 for FY2025. The FY26 accounts recorded other income of A$535,268, including A$268,368 from the sale of a subsidiary. Cash and cash equivalents stood at A$256,601 at the reporting date.

The June 2026 Appendix 5B separately disclosed A$378,000 of operating cash outflows, closing cash reported in rounded form at A$256,000, and an estimated one quarter of funding available. The company indicated that capital raising, available listed investments and other funding measures were relevant to its liquidity. Its FY26 financial statements also identified material uncertainty relating to going concern, while the directors retained the going-concern basis of preparation.

Operational and Financial Checkpoints

The next substantive Nejo development is the granting of the exploration permit, followed by evidence of fieldwork actually commencing. Askari Metals Limited (ASX:AS2) also has exploration interests at Uis in Namibia, where its October 2026 communications addressed project-wide soil sampling.

The September 2026 quarter cash-flow filing is another important record because it can establish a more recent cash balance and funding estimate than the June figures.

Key Insights

Askari Metals Limited (ASX:AS2) faces two distinct near-term constraints: obtaining approval to restart physical exploration at Nejo and maintaining funding while its projects remain pre-production. The Adola settlement removes identified contingent obligations but does not resolve the permit requirement. The company’s next disclosures can clarify whether operational activity has resumed and how available financial resources have changed since 30 June 2026.

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