Challenger Exploration (ASX:CEL) raise $42.1m to support development of Hualilan Gold Project following four-fold ground position increase
Challenger Exploration aims to becomes a globally significant gold producer. The Company is developing two complementary gold/copper deposits 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 Challenger with a low risk, high margin source of cash flow while it prepares for a much larger bulk gold operation in Ecuador.
Henslow is pleased to have acted for Challenger Exploration Limited to raise $42.1m. The raise was strongly supported by domestic and international institutions, both new and existing, with a cornerstone investment from a globally renowned investor.
Challenger have increased their ground position around their Hualilan Project four-fold and the Company now has a district land position of 80 square kilometres surrounding Hualilan. The placement funds will be applied to fund a new 100,000m drill program and the acquisition of the final 25% of the project, amongst other activities for the Hualilan Project. Funds raised will also be applied to additional drilling at the Company’s El Guayabo project and for general working capital.
This is the second raise that Henslow has completed for Challenger. Henslow acted as the Joint Lead Manager to the raise and we look forward to strengthening the partnership with Challenger as they continue their Hualilan and EI Guayabo/Colorado V drilling program.