16/07/2020 - 17:00

Challenger raises $20m for gold projects

16/07/2020 - 17:00

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West Perth-based Challenger Exploration says it will use funds raised from a $20 million share placement to explore the company’s gold projects in South America.

Challenger raises $20m for gold projects
Challenger will use the funds raised to expedite drilling at its South American projects. Photo: Shane McLendon (Unsplash)

West Perth-based Challenger Exploration says it will use funds raised from a $20 million share placement to explore the company’s gold projects in South America.

It comes after Challenger requested back-to-back trading halts, pending the capital raising.

Challenger is seeking to develop its flagship Hualilan gold project in Argentina, which hosts 627,000 ounces of gold at 13.7 grams per tonne of gold, as well as its El Guayabo gold-copper project in Ecuador.

Majority of the placement proceeds will be used to expedite a 35,000 metre drill program and complete a scoping study at Hualilan.

The company will also use funds to undertake 5,000 metres of drilling at the recently-discovered Colorado V gold system in Ecuador.

Under the placement, which closed ahead of schedule, Challenger will issue 100 million shares priced at 20 cents each, representing a 13 per cent discount to the company’s last closing price of 23 cents.

The placement was co-managed by Peloton Capital, Melbourne-based Henslow and Foster Stockbroking.

Further, the Challenger board had agreed to take the remainder of their 2020 salary as company shares, and will subscribe for a further 1.7 million shares for a total consideration of $335,000.

Challenger closed up 0.7 per cent on the ASX to trade at $4.50.

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