Challenger Gold's strategic agreement announcement

Challenger Gold (ASX:CEL) has finalized a definitive Binding Toll Processing Agreement with Casposo Argentina Mining for processing ore from the Hualilan Gold Project at Casposo plant in Argentina. The agreement ensures a processing capacity of 150,000 tonnes annually for three years, totaling 450,000 tonnes. A $6.6 million strategic placement has also been completed to support this initiative.

Challenger Gold's strategic future outlook

Challenger Gold (ASX:CEL) has secured a toll processing agreement with Casposo Argentina Mining, ensuring 450,000 tonnes of processing capacity over three years for the Hualilan Gold Project. The deal includes working capital support for mining, trucking, and processing costs. Additionally, a $6.6 million strategic placement has been completed, with settlement expected by January 2, 2025. Funds from the placement will be used for upfront payments, toll milling preparation, and general working capital. Challenger Gold retains full ownership of ore and products, while a performance fee incentivizes recovery rates. The company plans further exploration and testing over the next 12 months, aiming to strengthen its operational and financial foundation.

Executive insights on toll processing agreement

The agreement secures a guaranteed processing capacity and provides working capital to cover mining and processing costs. The strategic placement will support upfront access payments and preparation for toll milling.