Askari Metals to Sell Callawa Copper Project for $125,000

Askari Metals has entered into a binding sale agreement with privately-held Muccanabout Pty Ltd to sell its Callawa Copper Project, located in Western Australia. The decision is part of Askari’s broader strategy to focus on its core lithium and uranium exploration assets in Africa.

Under the terms of the agreement, Muccanabout will pay a total of $125,000 for the project. The payment will be made in two tranches: an initial cash payment of $55,000 within five business days of executing the agreement, followed by a second payment of $70,000 within six months. Upon receipt of the second tranche, the Callawa Project will be officially transferred to Muccanabout.

Askari’s Managing Director, Gino D’Anna, commented:  “The completion of this agreement with Muccanabout is in line with our strategy to streamline operations and concentrate on our uranium and lithium exploration activities in Tanzania and Namibia. We are also exploring additional opportunities to monetize our Australian exploration assets, which will contribute to long-term capital savings and improve operational clarity. In conjunction with this, we have introduced several cash preservation measures.  We are eager to keep our shareholders and investors informed as we continue to move forward.”.

The Callawa Copper Project is located 90 kilometers northeast of Marble Bar in the East Pilbara region of Western Australia. The region is known for its mineral-rich geology, including significant deposits of copper, gold, and other base metals. Despite the potential of the Callawa Project, Askari Metals has chosen to divest it as part of its strategic refocus on African lithium and uranium assets, which are seen as more aligned with the company’s long-term growth objectives.

This divestment reflects a growing trend among exploration companies to concentrate their efforts on high-impact projects while divesting non-core assets. For Askari Metals, the decision to sell the Callawa Project underscores its commitment to capital efficiency and focused growth.

Askari Metals is emerging as a significant player in the battery metals space, particularly through its exploration activities in Africa. The company’s flagship Uis Lithium Project in Namibia has garnered considerable interest as it targets the rapidly expanding demand for lithium driven by the electric vehicle (EV) market. In addition, its uranium assets in Tanzania position Askari strategically within the growing clean energy sector, where nuclear energy is gaining traction as a low-carbon solution.

Askari Metals is a focused exploration company with a primary emphasis on Southern Africa. The company is actively advancing its Uis Lithium Project in Namibia, situated along the Cape-Cross – Uis Pegmatite Belt in Central Western Namibia. The project is strategically positioned just 2.5 km from the operational Uis Tin-Tantalum-Lithium Mine, which is run by Andrada Mining Ltd, and is conveniently located less than 230 km from the deep-water port of Walvis Bay, accessible via all-weather sealed roads. In March 2023, the company gained the support of lithium industry giant Huayou Cobalt, which remains committed to backing Askari Metals’ ongoing exploration efforts.