Austral Gold’s (ASX:AGD) subsidiary Casposo Argentina Mining has terminated its toll processing agreement with Challenger Gold (ASX:CEL), effective as of 1 October 2026.
For the termination, Challenger has agreed to pay US$1 million ($1.4 million) to Casposo, representing the deferred balance of the initial fee in the toll agreement.
Challenger is required to pay this sum before 2 April 2029 and before the commencement of commercial production at the Hualilan Gold Project in Argentina.
Interest previously accrued on the deferred balance of the toll agreement has been wiped and no further interest will accrue, so long as Challenger pays its amounts owing on time.
If the sum is not paid by the due date, default interest of 6% will accrue per annum from 2 January 2025.
Both companies have agreed to continue ‘good-faith’ discussions regarding a potential agreement for Casposo to purchase mineralised material from Hualilan, along with other potential commercial opportunities.
Austral Gold is a gold and silver producer with numerous assets based in the Americas. The company’s three strategic pillars are production, exploration, and equity investments.
Challenger Gold is a gold and copper explorer focused on advancing the Hualilan Gold Project in Argentina.
Write to Maddison Elliott at Mining.com.au
Main Image: Challenger Gold
