Why Askari Metals (ASX:AS2) is funding Ethiopian gold and Namibian critical-minerals exploration through small share issues

Sonal Goyal

16 October 2026 11:02 PM AEDT

Why Askari Metals (ASX:AS2) is funding Ethiopian gold and Namibian critical-minerals exploration through small share issues

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Askari Metals describes its Nejo Project in Ethiopia as an advanced-stage brownfields gold and copper project covering about 1,200 square kilometres.
On 7 September 2026 the company issued 39,588,525 shares at A$0.008, mostly on conversion of a director loan.
An exploration programme at the Uis licence EPL 7626 in Namibia began on 26 May 2026.

Askari Metals (ASX:AS2) describes itself in recent ASX filings as an African exploration company focused on gold and critical minerals in Ethiopia and Namibia. The company has moved its portfolio away from its earlier Australian and lithium projects, and its recent filings show it relying on small share issues, priced at around a cent or less, to fund its activities and settle obligations.

Projects

In its standard description, used in announcements dated 18 June and 3 September 2026, Askari says the Nejo Project in Ethiopia is an advanced-stage brownfields gold and copper project covering about 1,200 square kilometres. The project surrounds the 1.7 million ounce Tulu Kapi Gold Mine and lies along strike from the 3.4 million ounce Kurmuk Mine. Those ounces belong to neighbouring operations, not to Askari.

The Uis Project in Namibia is a 100%-owned polymetallic critical-minerals project in the Cape Cross-Uis Pegmatite Belt, near Andrada Mining's Uis tin mine.

Recent exploration activity

The company's announcements trace a steady run of fieldwork through mid-2026. An exploration programme at the Uis licence EPL 7626 began on 26 May 2026, trench results from the K9 target followed on 10 June, and an exploration update on 18 June preceded planned polymetallic drilling. Askari released an operational update on Nejo on 30 June and an exploration progress update on Uis on 3 September.

Funding and dilution

Several filings set out how the company is paying for this work. On 18 June 2026, Askari issued 7.2 million shares at A$0.01 in lieu of cash for corporate advisory services, and placed a further 7.2 million shares under its existing Placement capacity.

On 7 September 2026, it issued 39,588,525 shares at A$0.008. Of these, 37.5 million were issued on conversion of a director Loan and about 2.09 million in lieu of director fees approved by shareholders on 12 August. At that price, the issue is worth about A$317,000.

On 3 September, 24,999,999 shares issued as part consideration for the Adola Greenstone Belt Gold Acquisition were released from voluntary escrow. Each of these issues adds to the share count, and settling advisory fees, director fees and loans in shares rather than cash means dilution is continuous, even when individual issues are modest.

The company also lodged an "ASX compliance and funding update" on 29 June, an ASX Listing Rule 10.11 compliance update on 8 July 2026 and its quarterly Cash Flow report on 31 July 2026.

Risks

The main risks are funding, dilution through repeated share issues, the technical and country risks of exploring in Ethiopia and Namibia, and the early stage of all of the company's programmes.

Key Insights

Askari's recent record shows an explorer active on two fronts in Africa while conserving cash by paying advisers and directors, and retiring a director loan, in shares. The planned polymetallic drilling at Uis and further work at Nejo will indicate the technical progress of the portfolio, while the quarterly cash flow reports will show how long current funding can support it. The company has not announced dated upcoming milestones.

FAQs

Q:Where does Askari Metals explore?

A:In Ethiopia, at the Nejo gold and copper project covering about 1,200 square kilometres, and in Namibia, at the 100%-owned Uis polymetallic critical-minerals project in the Cape Cross-Uis Pegmatite Belt.

Q:Do the Tulu Kapi and Kurmuk resources belong to Askari?

A:No. The 1.7 million ounce Tulu Kapi Gold Mine and the 3.4 million ounce Kurmuk Mine are neighbouring operations, not Askari's resources.

Q:How has Askari been issuing shares?

A:In June 2026 it issued 7.2 million shares at A$0.01 for advisory services and placed another 7.2 million, and on 7 September 2026 it issued 39,588,525 shares at A$0.008, mostly on conversion of a director loan.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.