Askari Metals Expands African Footprint with Strategic Ethiopian Gold Acquisition

April 30, 2025 01:16 PM AEST | By Team Kalkine Media

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Askari Metals Expands African Footprint with Strategic Ethiopian Gold Acquisition — Image source: Shutterstock

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Highlights

Askari secures five gold projects in Ethiopia’s Adola Greenstone Belt

Strategic entry into Africa’s underexplored yet highly prospective gold-copper terrain

High-grade geology and historical production data suggest strong discovery potential

Askari Metals (ASX:AS2) is accelerating its growth trajectory in Africa with the acquisition of Rift Valley Metals, a private company holding a portfolio of five highly prospective gold projects in Ethiopia’s renowned Adola Greenstone Belt. This move marks a significant geographic and strategic expansion for the company, granting access to 460 square kilometres of mineral-rich terrain in southern Ethiopia.

The acquired portfolio includes the Sakaro, Sakaro West, Lega Dembi South, Megado, and Wayu Boda projects, all located approximately 350km south of Addis Ababa. The region is part of the larger Arabian-Nubian Shield, which spans across multiple nations and is historically known for hosting world-class gold and copper deposits.

This acquisition places Askari in a prime first-mover position within an underexplored yet highly fertile belt, offering exposure to multi-million-ounce deposit potential. Notably, the Lega Dembi and Sakaro mines nearby have already demonstrated strong historical production, with Lega Dembi yielding over 2 million ounces of gold.

Under the terms of the deal, Askari will provide Rift Valley Metals with an upfront consideration of $200,000 in cash and an equal value in shares, subject to a 12-month voluntary escrow. Additional performance-based payments are linked to exploration results, including rock chip and trench sample grades, further incentivising project development.

The Megado project, situated in the heart of the mineralised corridor, and Sakaro West, with its high-grade metamorphic rock profile, add further depth to the portfolio’s geological potential. Past exploration efforts have revealed promising results, including rock chip samples with grades up to 47g/t gold.

The acquisition aligns with Askari’s broader strategy of becoming a leading explorer and developer across Africa. The company plans to initiate its exploration activities through remote sensing studies and reconnaissance programs to fast-track drill target identification.

This development comes at a time when Ethiopia is emerging as a favourable jurisdiction for mining investments. The government’s proactive stance on mineral development has attracted global mining giants such as Rio Tinto (ASX:RIO) and BHP Group (ASX:BHP), underpinned by a strong regulatory framework and investment incentives.

Additionally, with global gold prices trending near historic highs and renewed interest in resource-rich regions, the acquisition could position Askari strategically within the sector. The move may also interest investors eyeing broader opportunities in related sectors, including ASX dividend stocks and blue-chip equities within the ASX200 index.

Executive director Gino D’Anna, recently reappointed to the board, will lead the company's African growth push, leveraging over 15 years of mining and capital markets experience. As the company transitions into this new exploration phase, its disciplined approach and African-centric strategy reflect a sharpened focus on scalable, high-impact discoveries.

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