Challenger Gold Limited is pleased to announce that it has drawn down an initial US$2 million from its previously announced US$20 million Project Finance Facility to advance the development of its Hualilan Gold Project in San Juan, Argentina. The facility, arranged by Middlegate Securities Inc. and ECM Capital Advisors Inc., will support Challenger’s toll milling strategy and early mining works.
Key Highlights
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First tranche of US$2 million (~A$3.2 million) drawn under the US$20 million facility.
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Proceeds to fund:
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Early-stage mining preparation works in support of toll milling operations.
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General corporate overheads and working capital.
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Facility arranged by Middlegate Securities and ECM Capital Advisors.
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Terms include:
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Interest of 8.5% (pre-December 7, 2025 repayment) or 12.75% thereafter.
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Unsecured facility, repayable after first toll milling revenues.
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Bullet repayment structure, no early repayment penalties.
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Terms of Drawdown
The facility’s Tranche 1 funding provides flexible and non-dilutive project financing to support Challenger’s transition from development to gold production through its toll milling strategy. The initial drawdown includes a 4% arranger fee and a 101% principal repayment condition, with the aim to incorporate Tranche 1 into the larger facility and amortise repayments over 24–36 months once toll milling cash flows commence.
Strategic Financing Structure
Funds will be placed in a designated Escrow Account with Banco Comafi, the facility’s escrow agent in Argentina, in compliance with local regulatory requirements. The bank is authorised to settle Challenger’s obligations under the facility before releasing remaining export proceeds from toll milling.
Comment from Managing Director, Kris Knauer
“This initial drawdown marks a significant step forward as we move toward gold production at Hualilan. The support of ECM and Middlegate provides access to growth capital without shareholder dilution, and allows us to execute on our toll milling strategy with confidence. We are focused on delivering production-linked value and look forward to updating shareholders on our development progress in the near term.”
About us:
About Challenger Gold Limited
Challenger Gold Limited is an ASX-listed exploration and development company focused on the Hualilan Gold Project in Argentina. With a JORC 2012 Mineral Resource Estimate of 2.8Moz AuEq, Hualilan represents a high-grade, pre-development gold project with excellent infrastructure and near-term production potential.
For more information, visit: www.challengergold.com
Contact details:
Jane Morgan
Media & Investor Relations
E: [email protected]
T: +61 405 555 618