$30 Million Institutional Placement
| Stock | Challenger Gold Ltd (CEL.ASX) |
|---|---|
| Release Time | 27 Oct 2025, 9:34 a.m. |
| Price Sensitive | Yes |
$30 Million Institutional Placement for Challenger Gold Ltd
- Firm commitments secured for A$30 million placement to institutional investors
- Casposo Mill now fully operational, with the plant processing Casposo stockpiles
- Mobilisation of drill and blast contractors to Hualilan underway, with mining expected to start in December 2025 and first gold production in January 2026
Challenger Gold Limited (ASX:CEL) has announced that it has secured firm commitments for a A$30 million placement to institutional, sophisticated, and professional investors. The placement will see the company issue 230,769,231 new fully paid ordinary shares at an issue price of A$0.13 per share, representing a 7.1% discount to the last close and a 16.8% discount to the 15-day VWAP. The proceeds from the placement will be allocated towards working capital for the ramp-up of toll milling at the Casposo Mill, additional drilling to support the upsized standalone Life of Mine development at the Hualilan project, and select capital to prepare for the standalone development of Hualilan. The company noted that the Casposo Mill is now fully operational and processing Casposo stockpiles, while the mobilisation of drill and blast contractors to Hualilan is underway, with mining expected to start in December 2025 and first gold production in January 2026. The placement was strongly supported by both existing and new institutional investors, and the company believes it validates its strategy to generate near-term cash flow from Hualilan via toll-milling while simultaneously accelerating studies and drilling on an upsized standalone development.
At a gold price of US$3,300/oz, the Hualilan project's Life of Mine EBITDA is forecast to be US$143 million and Pre-Tax NPV of US$123 million. Employing a US$4,000/oz gold price, the EBITDA increases to US$195 million.
Challenger Gold is an unhedged and fully financed gold developer with a clear and de-risked pathway to production in early 2026. The company is focused on accelerating studies and drilling on an upsized standalone development of the Hualilan project while also providing additional working capital for the ramp-up of Hualilan for toll-milling.