Challenger Gold Limited (ASX: CEL) is pleased to announce it has received firm commitments to raise A$30 million via an institutional placement to support the ramp-up of operations at the Hualilan Gold Project in Argentina and advance the Company’s standalone development strategy.
The strongly supported placement was taken up by a combination of new and existing institutional investors at A$0.13 per share, representing a 7.1% discount to the last closing price of A$0.14 (22 October 2025) and a 16.8% discount to CEL’s 15-day VWAP.
The capital injection comes at a pivotal stage for Challenger, as the Casposo Mill is now fully operational and processing stockpiles, with mobilisation of drill and blast contractors to Hualilan already underway. Mining is expected to commence in December 2025, followed by first gold production in January 2026.
Proceeds from the Placement will be applied toward:
-
Working capital for the toll-milling ramp-up, including up-front payments under key operational contracts for mining, drilling, blasting, and haulage;
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A 40,000-metre drill campaign commencing January 2026 to underpin the expanded Life of Mine (LOM) Pre-Feasibility Study, due for release in Q1 CY2026; and
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Select capital expenditure to prepare for the standalone development of Hualilan.
The 2025 Toll-Treatment Pre-Feasibility Study (PFS) confirmed robust project economics, forecasting US$143M EBITDA and US$123M pre-tax NPV₅ at a gold price of US$3,300/oz, increasing to US$195M EBITDA at US$4,000/oz.
Managing Director, Kris Knauer, Commented:
“The A$30m placement has been strongly supported from existing and new institutional investors and will enable the Company to further accelerate studies on the upsized standalone development of Hualilan while also providing additional working capital for the ramp-up of Hualilan for toll-milling where first production is expected in January 2026.
We believe the success of the Placement validates our strategy to generate near-term cash flow from Hualilan via toll-milling while simultaneously providing Challenger the runway to accelerate studies and drilling on an upsized standalone development of Hualilan. Challenger is an unhedged and fully financed gold developer with a clear and de-risked pathway to production in early 2026.”
Placement Details
The Placement comprises 230,769,231 new fully paid ordinary shares, to be issued under Challenger’s existing placement capacity (ASX Listing Rule 7.1). Settlement is scheduled for 31 October 2025, with allotment and quotation expected on 3 November 2025.
Use of Funds
|
Use of Funds |
A$ million |
|
Working Capital & Transaction Costs |
21 |
|
Hualilan Feasibility Study (infill & extensional drilling) |
5 |
|
Standalone Development Capital |
4 |
|
Total |
30 |
Evolution Capital Pty Ltd and Sternship Advisers acted as Joint Lead Managers, with Euroz Hartleys and Henslow Partners acting as Co-Managers to the Placement.
About us:
About Challenger Gold Limited (ASX: CEL)
Challenger Gold Limited is an Australian-based gold development company advancing the high-grade Hualilan Gold Project in San Juan Province, Argentina. The Company’s strategy is centred on generating near-term cash flow through toll-milling operations at Hualilan while concurrently advancing an expanded standalone development pathway. Challenger’s portfolio provides exposure to a proven gold district with existing infrastructure and a clear route to production.
Contact details:
For further information:
Investor Enquiries:
Kris Knauer – Managing Director | +61 411 885 979 | [email protected]
US/Argentina Enquiries:
Sergio Rotondo – Executive Vice Chairman | +61 413 867 600 | [email protected]
Media Enquiries:
Jane Morgan – +61 405 555 618 | [email protected]
