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Highlights
- Strategic Investor Commitment: Askari Metals Limited has secured a $350,000 investment from Celtic Finance Corp. Pty Ltd, a sophisticated high-net-worth investor, via a two-tranche share placement.
- Focus on Tanzanian Uranium: The funds will drive expansion into Tanzanian uranium projects, including the Matemanga and Eyasi Uranium Projects, and further develop the Uis Lithium Project in Namibia.
- Enhanced Options for Investor: The investor will receive free attaching options and subscriber options exercisable at $0.022 by 2028, subject to shareholder approval.
Askari Metals Limited (ASX:AS2) has announced a binding Subscription Agreement with Celtic Finance Corp. Pty Ltd, a strategic high-net-worth investor, to raise $350,000 (before costs) through a structured placement. This capital injection is aimed at accelerating the company’s uranium exploration and development strategy in Tanzania while supporting other ongoing projects.
Details of the Placement
The placement will involve the issuance of 26,846,591 shares in two tranches:
- Tranche 1: 15,909,091 shares issued under ASX LR 7.1 capacity at $0.011 per share.
- Tranche 2: 10,937,500 shares at $0.016 per share, approved by shareholders.
Additionally, the strategic investor will receive a 1-for-1 free attaching option on the shares subscribed in Tranche 2. These options, exercisable at $0.022 and expiring on December 31, 2028, will be subject to shareholder approval. A further 10,000,000 subscriber options on similar terms will also be issued, pending approval.
The placement is set to be settled by January 10, 2025, and the new shares will rank equally with the company’s existing fully paid ordinary shares.
Advancing Uranium Exploration in Tanzania
The raised capital will primarily support Askari Metals’ Tanzanian uranium strategy, with a focus on two newly acquired projects:
- Matemanga Uranium Project: Located in Southern Tanzania, less than 70 km south of the world-class Nyota Uranium Mine. This project features a substantial radiometric anomaly over a 10 km x 6 km area identified in a 2006 survey.
- Eyasi Uranium Project: Situated in Northern Tanzania, this site has revealed two linear radiometric anomalies spanning a combined 30 km of strike. These anomalies are linked to fluvial channel systems draining from primary basement granites.
Both projects are seen as key to building a district-scale uranium portfolio in Tanzania, an emerging Tier-1 uranium region.
Additional Initiatives
The funds will also contribute to the exploration and development of the Uis Lithium Project in Namibia and provide general working capital. Moreover, the company is conducting due diligence on acquiring further uranium assets in Tanzania and is formulating a divestment strategy for its Australian exploration portfolio, which holds gold, copper, REE, and lithium prospects.
