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Highlights:
- $11 Million Financing Secured
Challenger Gold has secured a US$7 million ($11.2 million) loan from Banco San Juan to refurbish the Casposo plant in Argentina, aiming to process material from the Hualilan Project.- Well-Maintained Plant for Toll Milling
An independent audit confirmed that the Casposo plant is in good condition, with a capacity of 300,000 tonnes per year, double the company's requirement for processing Hualilan ore.- Strategic Plant Location and Historical Production
Located 170 km from the Hualilan Project, the Casposo plant has a strong production history, having previously yielded over 323,000 ounces of gold and 13.2 million ounces of silver.
Challenger Gold (ASX:CEL), a gold and copper exploration company, has announced a significant step towards advancing its operations with the securing of a US$7 million (approximately $11.2 million) financing package. This funding will be used for the refurbishment of the Casposo plant, located in Argentina, to facilitate toll milling for material sourced from the Hualilan Project.
The financing is structured as a secured loan from Banco San Juan, which will be disbursed in three installments. The loan carries an interest rate of 8% per year, with a 24-month term and a six-month grace period for each disbursement. Importantly, all disbursements, except for the initial US$1.5 million, are contingent upon the proper use of the funds as outlined in the agreement.
The Casposo plant, with a processing capacity of 300,000 tonnes per year, is significantly larger than the 150,000 tonnes per year commitment required by Challenger Gold for the Hualilan project. This provides ample room for future expansion and operational flexibility. The plant has been independently audited, confirming that it is well-maintained and suitable for toll milling of Hualilan ore.
Historically, the Casposo plant has demonstrated strong performance, having produced over 323,000 ounces of gold and 13.2 million ounces of silver. During its operational years, the plant achieved an average annual output of 40,000 ounces of gold and 1.6 million ounces of silver, with impressive recoveries of 90% for gold and 79% for silver.
Challenger Gold, with a market capitalization of $59.75 million, is positioning itself to become a key player in the gold production industry. The company is focused on developing its projects in South America, including the Hualilan Project, as part of its strategy to transition from an exploration company to an established gold producer. The secured financing for the Casposo plant refurbishment represents a critical step in achieving these goals and enhancing the company's production capacity in the region.
As Challenger Gold moves forward with its plans, the successful refurbishment of the Casposo plant will play a pivotal role in supporting the company's operational objectives and advancing its position in the global gold market.
