Challenger Gold Limited Secures $6.6 Million Capital Raise and Advances Toll Processing Agreement

Highlights:

• Strategic Investment: Challenger Gold Limited (ASX: CEL) secures AUD $6.6 million through a strategic placement with Eduardo Elsztain's IFISA, making him the company's largest shareholder with a 12.7% stake.
• Toll Processing Agreement Finalised: A US$2 million upfront payment guarantees processing of 450,000 tonnes of Hualilan material over three years at the Casposo Plant in Argentina, ensuring early cash flow opportunities.
• Board Renewal: Eduardo Elsztain to join as Non-Executive Chairman and Saul Zang as Non-Executive Director, bringing extensive expertise in mining and strategic investments to the company.

Strategic Placement Overview

Challenger Gold Limited (ASX: CEL) has successfully concluded a $6.6 million strategic placement with Inversiones Financieras del Sur S.A. (IFISA), an entity controlled by prominent Argentine businessman Eduardo Elsztain. At the time of writing, Mr. Elsztain becomes the company's largest shareholder, holding a 12.7% stake. The placement involved the issuance of 147.7 million ordinary shares at 4.5 cents per share, generating net proceeds of AUD $6,647,700.50. Additionally, each share includes an attached two-year warrant exercisable at incremental strike prices during its term.

This capital raise strengthens Challenger Gold’s financial position as it advances the commercialisation of its Hualilan Gold Project in Argentina.

Toll Processing Agreement Finalised

Complementing the capital raise, Challenger Gold has also completed the US$2 million upfront payment under its Toll Processing Agreement with Casposo Argentina Mining Limited. This agreement guarantees the processing of 150,000 tonnes of Hualilan material annually over three years, ensuring a secured capacity of 450,000 tonnes. The toll processing will occur at the Casposo Plant in San Juan, Argentina, renowned for its historical production of over 323,000 ounces of gold and 13.2 million ounces of silver.

Board Renewal Initiatives

As part of its strategic growth, Challenger Gold plans to appoint Eduardo Elsztain as Non-Executive Chairman and Saul Zang as Non-Executive Director. Their extensive expertise in mining and real assets is expected to bolster the company's efforts to achieve operational and strategic milestones.

Conclusion

The completion of the $6.6 million placement and the Toll Processing Agreement underscores Challenger Gold’s commitment to leveraging its Hualilan assets. These developments provide a robust foundation for the company’s growth in the competitive gold mining sector.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com