Challenger Gold Limited (ASX: CEL) Completes Strategic Placement and Toll Processing Agreement
Challenger Gold Limited (ASX: CEL) has successfully completed a $6.6 million strategic placement to Inversiones Financieras del Sur S.A. (IFISA), controlled by Mr Eduardo Elsztain. This placement resulted in the issuance of 147,726,678 ordinary shares at 4.5 cents each, bringing IFISA’s shareholding in CEL to 12.7%.
Joining the board, Mr Elsztain will serve as Non-Executive Chairman, accompanied by Mr Saul Zang as a Non-Executive Director. Their extensive experience and international networks are expected to support the company’s efforts in commercialising the Hualilan project.
Following the placement, CEL has also made a US$2 million upfront payment under its Toll Processing Agreement with Casposo Argentina Mining Limited, ensuring the processing of 150,000 tonnes per annum of Hualilan material over three years. The total secured capacity amounts to 450,000 tonnes.
The agreement aims to capture high gold prices, potentially generating early cash flow to channel towards the standalone Hualilan Gold project. CEL has identified approximately 450,000 tonnes of material containing around 85,000 ounces of gold and 495,000 ounces of silver available for toll processing.
Operational Highlights
The average grade of the Toll Milling Inventory has been reported at 5.8 g/t Au and 32.2 g/t Ag. Essential terms of the agreement include processing at cost and a base access fee, alongside performance-based fees linked to recovery rates.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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