Challenger Gold (ASX: CEL) has completed a $6.6 million strategic placement to an entity controlled by Eduardo Elsztain, who has become the largest shareholder with a holding of 12.7% in CEL.
Additionally, a US$2 million up-front payment required under the Toll Processing Agreement with Casposo Argentina Mining has been paid. This guarantees toll processing of 150,000 tonnes per annum of Hualilan material over three years, with a total secured capacity of 450,000 tonnes.
The company intends to appoint Mr Elsztain to its Board as Non-Executive Chairman and Saul Zang to its Board as a Non-Executive Director.
Mr Elsztain is a prominent Argentine businessman who has built a huge portfolio of real assets in the last three decades, including rental and mixed-use properties in Argentina and farmland in Latin America. Mr Elsztain also has extensive interests in mining both inside and outside Argentina.
Mr Zang has a law degree from the University of Buenos Aires and was a founding partner of Zang, Bergel & Viñes Abogados. A specialist in business law, mergers and acquisitions, financial operations, insurance and real estate and agricultural businesses. He is Vice-director of IRSA S.A., Cresud SACIF and Consultores Asset Management, and member of the Board of Directors of Banco Hipotecario S.A. Mt Zang was also
The US$2M upfront payment required under the Toll Processing Agreement executed on 30 December 2024 has been paid. This guarantees toll processing of 150,000 tonnes per annum of Hualilan material over three years, with a total secured capacity of 450,000 tonnes.
The Toll Processing Agreement with with Casposo Argentina Mining the operator of the Casposo treatment plant located in San Juan Argentina is for toll processing ore from Hualilan.
The Casposo Plant is located 170km from Hualilan via established roads. It has historically produced over 323,000 ounces of gold and 13.2 million ounces of silver. During operations, the plant achieved average annual production of 40,000 ounces of gold and 1.6 million ounces of silver at recoveries of 90% for gold and 79% for silver.
The primary objective of the Toll Treatment strategy is to capitalise on the current high gold price (above US$2,500/oz) to generate early cash flow. This cashflow will be allocated towards the construction of the standard-alone Hualilan Gold project.
The company has identified 450,000t of Hualilan material containing approximately 85,000 oz of gold and 495,000 oz silver contained in four starter pits for Toll processing. Open pit designs have been completed for these pits generating Potential Mining Inventory (PMI) for Toll Milling of 478,000t which starts at surface.