Challenger Gold's share purchase plan announcement

Challenger Gold Limited (ASX:CEL) has announced a share purchase plan (SPP) to provide eligible shareholders in Australia and New Zealand with the opportunity to acquire up to A$30,000 worth of Challenger ordinary shares without paying any brokerage costs, commission, or other transaction costs. The SPP allows shareholders to invest at the same price as a planned 10% placement to a strategic investor that will raise A$6.6 million at A$0.0451 (4.5 cents) per share. Additionally, the company has entered into an agreement to Toll Mill high-grade ore from Hualilan, aiming to capitalize on the current high gold price to generate early cash flow, with the objective of funding the larger stand-alone Hualilan development mine.

Executive commentary on the share purchase plan

This is a transformational milestone for CEL and provides a clear pathway into production. The SPP offers eligible shareholders the opportunity to acquire shares at a discounted price, representing a 17% discount to the last closing price and an 18% discount to the 5-day volume-weighted average price of shares traded on the ASX. The company's objective is to generate early cash flow through Toll Milling and allocate it towards the larger stand-alone Hualilan development mine. The Toll Milling program is expected to start within 9 months and is fully permitted for immediate mining and processing.

Summary of Challenger Gold's share purchase plan announcement

Challenger Gold Limited (ASX:CEL) has announced a share purchase plan (SPP) to provide eligible shareholders in Australia and New Zealand with the opportunity to acquire up to A$30,000 worth of Challenger ordinary shares without paying any brokerage costs, commission, or other transaction costs. The SPP allows shareholders to invest at the same price as a planned 10% placement to a strategic investor that will raise A$6.6 million at A$0.0451 (4.5 cents) per share. Additionally, the company has entered into an agreement to Toll Mill high-grade ore from Hualilan, aiming to capitalize on the current high gold price to generate early cash flow, with the objective of funding the larger stand-alone Hualilan development mine. The Toll Milling program is expected to start within 9 months and is fully permitted for immediate mining and processing. The company's CEO will hold a shareholder Webinar on 8th October 2024, providing an opportunity for shareholders to gain further insights into the SPP and the company's strategic initiatives.