Askari Metals (ASX:AS2) Funding and Strategic Offerings

Askari Metals Limited (ASX:AS2) has successfully secured a long-term funding package through the issue of Convertible Notes with a 2-year maturity, raising $920,000 (before costs), subject to shareholder approval. The proceeds from the Convertible Note will be used to fully repay the loan advanced to the Company by certain lenders in the amount of $760,000 as announced on 23 July 2024. Additionally, the Company intends to undertake a priority offer of new options to existing AS20 option holders, subject to shareholder approval, with the proposed options to be listed on ASX, subject to meeting ASX Listing Rule requirements.

Executive Commentary on Funding and Strategic Offerings

Askari Managing Director Gino D'Anna emphasized the significance of securing a long-term 2-year Convertible Note, providing flexibility and certainty over the future funding requirements of the Company while removing imminent funding pressures. This funding will enable the Company to continue executing its aggressive uranium acquisition strategy in Tanzania, strengthening its position following the recent acquisition of the Matemanga Uranium Project. The priority offer of options to AS20 option holders is aimed at providing additional upside as the Company's strategy across lithium and uranium in Africa gains momentum.

Summary of Funding and Strategic Direction

Askari Metals (ASX:AS2) has successfully secured a long-term funding package through Convertible Notes, providing flexibility and certainty over future funding requirements. The Company's priority offer of options to existing AS20 option holders aims to strengthen its strategic position across lithium and uranium in Africa. The funding will be used to fully repay a previous loan and for general working capital purposes. Additionally, the Company is aggressively pursuing its Tanzanian uranium acquisition strategy, building upon the strategic position set by the recent acquisition of the Matemanga Uranium Project. Furthermore, the Company has implemented capital preservation strategies, including the conversion of outstanding directors fees and consulting fees into equity, to strengthen its balance sheet. The ongoing strategic review and sale process of Australian assets, along with the update on the Uis Lithium Project in Namibia, demonstrate the Company's commitment to enhancing shareholder value and focusing on its African-based clean energy mandate.