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Challenger Gold Secures $11 Million Financing for Casposo Plant

Challenger Gold Secures $11 Million Financing for Casposo Plant

Challenger Gold obtains financing for refurbishment

Challenger Gold (ASX: CEL) has secured US$7 million ($11.2 million) in financing to refurbish the Casposo plant. The funding will support toll milling material from the company’s Hualilan Project in Argentina.

Austral Gold’s (ASX: AGD) subsidiary, Casposo Argentina Mining, secured the loan from Banco San Juan. Challenger Gold confirmed the funds would refurbish the plant, aligning with a binding memorandum of understanding to process mineralised material from Hualilan.

Also Read: Caprice Resources Hits Visible Gold at WA Project, Expands Drilling Efforts

Loan details and allocation of funds

The financing agreement features an 8% annual interest rate and a 24-month term from the loan disbursements. Each disbursement includes a six-month grace period.

The loan consists of an initial US$1.5 million disbursement within five business days of signing. Subsequent disbursements include US$2.5 million within 60 to 75 days, followed by US$1 million, US$0.5 million, and US$1.5 million at intervals of 30 to 45 days.

Challenger Gold noted that all disbursements, apart from the initial US$1.5 million, must adhere to the specified fund allocation.

The company plans to use the loan for capital expenditures and working capital needed to refurbish the Casposo plant.

Casposo plant’s audited potential

Challenger Gold announced on 13 December 2024 that an independent audit confirmed the Casposo plant’s sustainability for toll milling. The audit also highlighted the plant’s excellent maintenance.

The Casposo plant boasts an annual capacity of 300,000 tonnes. This capacity is double Challenger’s annual toll milling requirement of 150,000 tonnes.

Historical production figures support confidence

The Casposo plant is 170km from the Hualilan Project. Historically, the plant produced over 323,000 ounces of gold and 13.2 million ounces of silver.

The facility achieved an average annual production of 40,000 ounces of gold and 1.6 million ounces of silver. Recovery rates reached 90% for gold and 79% for silver during previous operations.

Challenger Gold’s future plans

Challenger Gold aims to become an established gold producer. The company is advancing two projects in South America, focusing on gold and copper exploration.

The financing for the Casposo plant marks a significant milestone in Challenger’s plans to begin toll milling operations. The company views this as a critical step in its growth strategy.

Looking ahead

Challenger Gold’s ability to secure financing demonstrates its strategic focus and operational potential. The Casposo plant refurbishment is expected to strengthen the company’s position in the mining sector.

Challenger’s efforts to capitalise on toll milling opportunities align with its vision to become a leading gold producer. The Casposo plant’s restart will play a pivotal role in realising this vision.

 

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