$20M Placement for Challenger Exploration Limited To Expedite Gold Projects
Henslow is pleased to announce that Challenger Exploration Limited has received firm commitments to raise $20M through the issue of 100 million shares. The share offer was strongly supported by domestic and international institutions and sophisticated investors with bids received for substantially more than the amount raised.
Challenger Exploration Limited’s (ASX: CEL) aspiration is to become a globally significant gold producer. The Company is developing two complementary gold/copper projects in South America. The strategy for the Hualilan Gold Project is for it to provide a high-grade low capex operation in the near term. This underpins CEL with a low risk, high margin source of cash flow while it prepares for a much larger bulk gold operation in Ecuador.
Evolving into a significant global gold producer
With the funds raised, the company can now rapidly advance both the high-grade Hualilan Gold Project in Argentina and El Guayabo Gold/Copper Project in Ecuador. Additionally, the funds will expedite a 35,000 metre drilling program, expand the footprint, and enhance scoping study and additional studies (mining and geophysics) at its flagship Hualilan gold project. Proceeds will also be used to deliver a 5,000 metre drilling program at Colorado V designed to allow the reporting of a JORC compliant resource and fund working capital and costs of the offer.
New discoveries amplifying exploration goals
The funding follows the company’s recent high-grade results including 8.3m at 21.1 g/t AuEq, 3.8m at 11.6 g/t AuEq, and 4.5m at 8.9 g/t AuEq (ASX Release 17 June 2020), and the discovery of a new style of porphyry hosted gold mineralisation with drill hole GNDD-025 returning 50m at 1.4 g/t gold, 3.4 g/t silver with the intersection open at depth (ASX release 8 July 2020). The aforementioned 35,000 metre drilling program funded by placements will be designed to drill out the main two kilometre strike extent which contains the existing historical resource (open in all directions), and the new porphyry hosted discovery. The program will also target extensions to this high-grade mineralisation and the new porphyry discovery further north and south along strike.
Henslow was Co-Lead Manager to the Placement. Henslow looks forward to fruitful collaboration with CEL as they continue their Hualilan and Colorado V/El Guayabo drilling program.
Want to discuss this transaction further? Get in touch with the Henslow team below.