ASX-listed Askari Metals has entered into an agreement to acquire the advanced Nejo gold project, in Ethiopia, through the acquisition of 100% of the issued  capital of Hong Kong-based Xingxu Mining International Investment from Xingguang Group.

Xingxu Mining owns 100% of the Nejo project, which covers an area of about 1 174 km2.

The acquisition provides Askari with a 100% legal and beneficial interest in the project, which is being operated in collaboration with local Ethiopian partners that have managed the project successfully over the past four years.

“This transformational acquisition represents an outstanding opportunity for the company to position ourselves at the forefront of one of Africa’s most exciting gold regions in . . . Ethiopia,” says executive director Gino D’Anna.

D’Anna describes East Africa as fast becoming a “world-renowned” jurisdiction for the development of major mining operations, including Perseus Mining’s Nyanzaga gold mine, in Tanzania, and the Meyas Sand gold project, in Sudan.

“Nejo offers everything we look for in a flagship asset – scale, high-grade gold upside, proven mineralisation and proximity to major gold operations on a globally significant greenstone belt.

“Historic results demonstrate outstanding gold grades over wide intercepts across multiple targets – and yet, much of the tenement remains underexplored. With a large-scale landholding, extensive historical data, and clear targets we have the ingredients to fast-track Nejo toward a maiden Joint Ore Reserves Committee- (Jorc-) compliant resource,” he says.

He notes that this acquisition elevates Askari into a new growth phase, one where discovery and resource definition can drive significant value for shareholders.

Moreover, Askari says the acquisition provides the company with exposure to an advanced brownfields gold project offering significant large-scale resource potential.

Located within the Arabian-Nubian Shield, the company says this highly prospective geological region is known for its significant gold endowment, hosting large-scale multimillion-ounce discoveries across Egypt, Sudan, Eritrea, Ethiopia, Saudi Arabia and Yemen.

The Nejo gold project is located on the same Greenstone Belt as the 3.4-million-ounce Kurmuk Mine, owned and operated by Canadian miner Allied Gold, which has a targeted production rate of 290 000 oz/y and surrounds the 1.7-million-ounce Kefi Gold and Copper owned and operated Tulu Kapi mine.

Askari says Nejo hosts mineralised extensions of the Tulu Kapi mine and extensive historic exploration has been undertaken highlighting the significant mineralisation potential of the project area.