Sydney, Australia – 2 October 2024 | Challenger Gold Limited (ASX:CEL) (“Challenger Gold” or “the Company”) is pleased to announce that it has secured a binding term sheet for a A$6.6 million private placement with Dolphin Real Assets Fund SPC Ltd, part of the Elsztain Group, alongside a Toll Milling Agreement that will fast-track the Company’s Hualilan Gold Project in Argentina into production by Q2 2025.
Highlights:
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A$6.6 Million Strategic Placement: The Company has secured A$6.6 million through a private placement with Dolphin Real Assets Fund SPC Ltd, an existing shareholder.
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Toll Milling Agreement: The Toll Milling Agreement guarantees the processing of 450,000 tonnes of high-grade ore over three years, providing early cash flow from the Hualilan Gold Project.
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Early Gold Production: 478,000 tonnes of ore containing 85,550 oz of gold and 495,334 oz of silver has been identified for the startup phase, with open-pit mining to commence once permits are secured.
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Permitting Progress: The Company has submitted an Environmental Impact Assessment (EIA) application for mining approval, marking the final step toward full production readiness at Hualilan.
Strategic Toll Milling Agreement:
The Toll Milling Agreement will allow Challenger Gold to process 450,000 tonnes of high-grade oxide ore at a nearby facility, reducing upfront capital costs and enabling gold production by Q2 2025. The identified ore contains 85,550 oz of gold and 495,334 oz of silver, with an average grade of 5.8 g/t Au and 32.2 g/t Ag, which will be mined from shallow, low-strip ratio open pits.
This early-stage production strategy will fund the broader development of the Hualilan Project, including the construction of a Flotation with Tails Leach (FTL) circuit and a potential Heap Leach pad.
Share Purchase Plan (SPP):
In conjunction with the strategic placement, Challenger Gold will offer a Share Purchase Plan (SPP) to existing shareholders, capped at A$1 million, allowing participation at the same price as the placement.
Kris Knauer
Managing Director
+61 411 885 979
kris.knauer@challengergold.com
Jane Morgan
Investor and Media Relations
+61 405 555 618
jm@janemorganmanagement.com.au
About us:
About Challenger Gold Limited:
Challenger Gold Limited is an Australia-based gold and copper exploration company. The Company’s projects include the Hualilan project, El Guayabo project, and Karoo Basin Gas project. The Hualilan project consists of 15 mining leases and an exploration license application covering the surrounding area of approximately 26 square kilometers (km2). The Hualilan Project is located approximately 120 kilometers (km) north-northwest of San Juan, the capital of San Juan Province in north-western Argentina. The El Guayabo Gold/Copper project is located within the El Oro Province of southern Ecuador, approximately 35 Kilometers south southeast of Machala. The El Guayabo project comprises four contiguous tenement groups, the El Guaybo, El Guaybo 2, Cerro Pelado 1, 2, and 3 tenements, and Colorado V tenement. The Karoo Basin Gas project includes application for the Cranemere project, a shale gas prospect located in the Eastern Cape Province. The application covers approximately 3,500km2.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au
