Challenger Gold's new partnership

Challenger Gold (ASX:CEL) has signed a Toll Processing Agreement with Austral Gold Limited's subsidiary. The partnership, announced in December 2024, involves processing material from Challenger's Hualilan project at the Casposo Plant in Argentina. Financial terms include a US$3 million payment, a monthly fee, and an incentive fee.

Details and future outlook

Challenger Gold has entered a crucial agreement with Austral Gold, processing Hualilan project material at Casposo Plant. The terms include a US$3 million payment and fees tied to operations. Refurbishment of the plant, funded by Banco San Juan, is set for completion by July 2025, allowing for annual processing of 150,000 tons. A contingency ensures the initial payment refund if processing issues arise. This deal marks an expansion in Austral's revenue streams and asset portfolio, aligning with strategic goals in the Americas. Forward-looking statements highlight potential risks and uncertainties in achieving these objectives.

Executive insights on the agreement

The agreement outlines a strategic partnership that benefits both parties, leveraging Austral's existing infrastructure and Challenger's project material,' said Austral Gold's representative.