Challenger Gold Secures $7 Million Financing for Casposo Plant Refurbishment

Highlights

• Successful Financing: Challenger Gold has successfully secured US$7 million in financing to support the refurbishment of the Casposo Plant. The funds, provided through a loan from Banco San Juan S.A., will be used to process mineralised material from the company’s Hualilan Project.
• Purpose: The funds will be used to refurbish the Casposo Plant and provide working capital for the project.
• Independent Audit Results: An independent audit estimated that the refurbishment will require US$4 million for parts and spares.

Challenger Gold (ASX:CEL) has announced the successful acquisition of US$7 million in financing, which will go toward refurbishing the Casposo Plant. The financing was secured through a loan agreement with Banco San Juan S.A., with a clear goal of processing mineralised material from the company’s Hualilan Project. This development marks a critical step forward in Challenger Gold’s plans to advance its operations and maximize the potential of its key mining assets.

Loan Agreement and Disbursement Schedule

The loan agreement outlines a structured disbursement schedule for the US$7 million funding. The initial disbursement of US$1.5 million is set to be released within five business days of signing. The second disbursement, amounting to US$2.5 million, will be made between 60 and 75 days after the agreement, with subsequent disbursements of US$1 million, US$0.5 million, and US$1.5 million following at intervals of 30 to 45 days.

The loan carries an interest rate of 8% per annum and has a term of 24 months, with a 6-month grace period on each disbursement. These funds are intended to support the Casposo Plant refurbishment and help ensure the successful continuation of the Hualilan Project.

Refurbishment Cost and Audit Findings

An independent audit of the Casposo Plant and the restart plan revealed that the total cost for parts and spares required for the plant’s refurbishment will amount to approximately US$4 million. This estimate has helped outline the financial requirements to complete the necessary work and ensure the plant’s readiness for future operations.

Market Reaction

Following the announcement of the successful financing, shares of Challenger Gold saw a positive reaction, rising by 7.70% to 4 cents per share. This market movement reflects growing investor confidence in the company’s ability to execute its refurbishment plan and continue progressing with its operations in Argentina.