5 December 2024
West Perth, Australia – Challenger Gold Limited (ASX: CEL) is pleased to announce the finalisation of a binding agreement with Casposo Argentina Mining Limited, the operator of the Casposo treatment plant in San Juan, Argentina. This agreement marks a pivotal step in advancing the Hualilan Gold Project and securing the Company’s strategic objectives.
Key Highlights:
-
Toll Milling Agreement Finalised:
-
Secured processing capacity of 150,000 tonnes per annum for three years (totaling 450,000 tonnes).
-
Working capital support provided for mining, transportation, and processing until cash flows commence.
-
Final long-form agreement anticipated within 15–20 days.
-
-
Favourable Terms:
-
Base toll processing fee set at US$8.80 per tonne, with a minimum monthly payment of US$110,000.
-
US$2M upfront payment, with US$1M deferred to the second year (US$6.67/t equivalent).
-
Performance-based incentive fees ranging from 20–30% of milling costs, contingent on gold recovery rates.
-
-
Strategic Investment:
-
Progressing a previously announced $6.6M strategic placement with subscription terms finalised.
-
Operational Pathway to Production:
Challenger Gold is diligently working on multiple fronts to ensure the successful execution of the toll milling agreement and subsequent production activities:
-
Completion of open-pit mining designs, with schedules expected within 10 days.
-
Evaluation of contract mining versus owner-operated solutions, leveraging local equipment availability.
-
Preparation for initial processing campaigns to commence under the agreed terms, targeting continuous processing subject to technical committee approval.
About us:
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
Investor Releations
jm@janemorganmanagement.com.au
