Key Highlights

  • The former Askari Metals began trading as Highland Metals under the HLM code on 3 November 2026.
  • The company is negotiating a non-binding term sheet to buy a lithium exploration project in Canada, paid in cash and shares.
  • Cash was only $64,000 at 30 September, and the company estimates zero quarters of funding, though it holds $445,000 of listed securities.
  • The company says it will announce the Canadian deal or any other transaction only once ASX Listing Rules require disclosure.

Highland Metals (ASX:HLM) is the former Askari Metals Limited (previously ASX:AS2). It changed its name and began trading under the HLM code on 3 November 2026. A week later it set out a strategy that combines its existing gold, copper and critical metals projects in Ethiopia and Namibia with a search for new acquisitions.

One possible deal is already known. In a cleansing notice dated 9 November 2026, the company said it was negotiating a non-binding term sheet to buy a lithium exploration project in Canada from an exchange-listed company. The payment would be a mix of cash and Highland shares, including deferred shares tied to milestones. This is at a very early stage: due diligence, binding documents and Shareholder approval are all still required, and the company says there is no guarantee it will proceed.

The rebrand and corporate changes

The 2 November announcement said the change of name and code does not affect shareholders' rights or holdings. Older announcements are listed under AS2. Other recent corporate actions:

On 15 October the company settled with the vendors of Rift Valley Resources, which holds the Adola gold projects in southern Ethiopia. Three million shares at a deemed 1 cent removed up to $350,000 of deferred and milestone payments and a 1% net smelter royalty.

Non-executive director Martin Holland resigned on 30 October.

On 9 November 5.75 million quoted options, exercisable at $0.022, were issued to lead manager CPS Capital under a mandate approved in August.

The existing portfolio

According to the 10 November corporate update, at the Uis project in Namibia the company is reviewing existing data. It is focusing on tin results along strike from the operating Uis tin mine, as well as earlier tantalum, lithium, rubidium and caesium results. Soil sampling across licence EPL 7626 was completed in early October. These are exploration results, not resources.

At the Nejo gold-copper project in Ethiopia, the planned drilling, trenching, mapping and geophysics all depend on approvals. The company openly acknowledges the challenges of Ethiopia's permitting environment. The September Quarterly Report pointed to recent government appointments that it hopes will move regulatory processes forward.

Cash position

The Appendix 5B released on 29 October 2026 shows cash of only $64,000 at 30 September, down from $256,000. Net operating outflows were $317,000, $25,000 went on Acquisition due diligence, and there was a $150,000 financing inflow. The company estimated zero quarters of funding available. In its answers to ASX it said it is debt-free, holds $445,000 of listed securities it could sell, and expects to raise more funding when needed.

The company has not announced a capital raising since the quarter ended. This suggests a raising or sale of investments is likely soon, especially if the Canadian acquisition goes ahead with a cash component.

Risks and upcoming events

The main risks are funding, dilution and execution. The Canadian deal may not happen or may change. Any raising at current prices would be highly dilutive. The value of the listed investments may change. Exploration at Nejo depends on Ethiopian approvals. The Uis work is at the review stage.

The Annual General Meeting is set for 10:00am (AWST) on Monday 23 November 2026 in Osborne Park, Western Australia. The company says it will announce the Canadian deal or any other transaction only once it reaches the point where the ASX listing rules require disclosure.