Challenger Gold (ASX:CEL) strategic update

Challenger Gold Limited (ASX:CEL) has entered a binding term sheet for a A$6.6M strategic private placement with Dolphin Real Assets Fund SPC Ltd. and a toll milling opportunity for Hualilan's ore. The toll milling agreement is expected to provide funding for costs of mining, transporting, and processing until CEL receives revenue from initial gold sales. This strategic move aims to capitalize on the current high gold price to generate early cash flow, which will be allocated towards the construction of the standalone Hualilan Gold project.

Executive Commentary

The Toll Milling Agreement is a transformational event for the Company, providing a guaranteed minimum of 450,000t of high-grade near surface Hualilan ore over 3 years for processing. This strategic move is aimed at capitalizing on the current high gold price to generate early cash flow, which will be used to fund the larger Hualilan stand-alone development. The Company is also preparing to release an interim desktop study focused on the Toll Milling startup and intends to apply for a listing on the TSX or another recognized Canadian stock exchange following closing.

Summary

Challenger Gold Limited (ASX:CEL) has strategically secured a A$6.6M private placement and a toll milling agreement for Hualilan's ore, aiming to accelerate the project timeline and capitalize on the current high gold price. The Toll Milling Agreement guarantees a minimum of 450,000t of high-grade near surface Hualilan ore over 3 years for processing, providing the Company with the opportunity to generate early cash flow. This cash flow will be used to fund the larger Hualilan stand-alone development. Additionally, the Company is preparing to apply for a listing on the TSX or another recognized Canadian stock exchange following closing, which is expected to facilitate a process of board renewal with the Company targeting 1-2 Canadian based Independent Directors to likely replace existing CEL Directors.