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Finance Investment, Oil Mining Resources

Challenger Gold (ASX:CEL) announces $5.6M Private Placement at above market and Strategic Funding Update

Challenger Gold (ASX:CEL) 2 mins read

Sydney, Australia – Challenger Exploration (ASX: CEL), an ASX listed gold exploration company, is thrilled to announce a significant strategic investment from Argentina's premier real assets group, led by the esteemed businessman and entrepreneur, Mr. Eduardo Elsztain. This partnership marks a pivotal moment for Challenger, as it secures an initial 5% stake from the group at a premium, showcasing strong confidence in Challenger's future prospects.

The investment, completed at a price of 8.5 cents per share, represents a 6% premium over the last trading price and a 9% premium to the 20-day VWAP, totaling an immediate cash injection of A$5.6 million. This strategic placement includes a one-for-one option exercisable at 14 cents per share over the next 12 months, potentially bringing an additional A$9.3 million to Challenger, subject to exercise.

Mr. Elsztain's group, with vast interests in real estate, agriculture, and mining across Argentina and other regional countries, has expressed its intention to possibly increase its stake in Challenger. This intent is contingent upon a more detailed due diligence process and the company's evolving funding requirements.

The funds from this strategic placement will aggressively advance the development of Hualian, ensuring Challenger's continued growth and innovation in the exploration sector. Furthermore, as part of the agreement, Challenger will welcome a non-executive director nominee from Mr. Elsztain's group to its Board of Directors. This new shareholder will also have the right to appoint a nonvoting observer to attend specific Board meetings, either alongside or in the absence of the nominated Director.

Commenting on the placement, CEL Executive Director, Ms Sonia Delgado, said 

"As Executive Director of Challenger Gold, I am delighted to welcome Mr. Eduardo Elsztain as a new shareholder of our Company. This partnership not only reinforces our strategic position in San Juan, Argentina but also underscores the confidence and shared vision in the potential of our gold project within Argentina.

The investment is a testament to the hard work of our team and the robust potential of our exploration efforts. We look forward to collaborating closely to unlock value for all stakeholders and contribute positively to the local community and economy. This marks a significant milestone in our journey, and we are excited about the opportunities this partnership will bring."

Mr. Eduardo Elsztain, known for his extensive portfolio of real assets developed over the last three decades, brings a wealth of experience and insight to Challenger. His involvement in rental, mixed-use properties, farmland across Latin America, and mining interests both within and outside Argentina, positions him as a valuable strategic partner for Challenger Exploration.

Challenger Exploration is excited about this new chapter and the opportunities it brings. The company looks forward to leveraging Mr. Elsztain's expertise and the strategic resources of his group to enhance its exploration endeavors and create value for all stakeholders.

About us:

Challenger Gold Limited’s (ASX: CEL) aspiration is to become a globally significant gold producer. The Company is developing two complementary gold/copper projects in South America with the Company's flagship Hualilan Gold Project in San Juan, Argentina containing resources of 2.8 Moz AuEq. 

Contact details:

Jane Morgan


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