Challenger Gold (ASX:CEL) has finalized a binding Toll Milling Agreement with Casposo Argentina Mining Limited. This agreement will enable the processing of ore from its Hualilan Gold Project. It secures an annual processing capacity of 150,000 tonnes over the next three years. Additionally, it provides support for mining, ore transport, and processing costs until cash flow is generated.
Challenger Gold has taken a significant step forward by securing a Toll Milling Agreement, ensuring a processing capacity of 150,000 tonnes annually for three years at its Hualilan Gold Project. This agreement includes an incentive structure based on gold recovery rates and working capital support. The company expects to finalize the long-form agreement within 15-20 days. Challenger Gold is also advancing a $6.6 million strategic investment, which supports their financial and operational goals. They are preparing to commence toll milling operations soon, with evaluations of contract mining and owner-operated options. The company remains focused on resource extension and exploration drilling, with plans for additional metallurgical tests. This strategic move aims to enhance their operational efficiency while complying with industry standards and regulatory requirements.
The Toll Milling Agreement establishes terms for processing at cost with a base toll processing fee and includes an incentive structure tied to gold recovery rates. Additional terms include a refundable upfront payment if the plant is not operational by July 31, 2025, and provisions for working capital funding to cover the company's costs under an approved budget.