Challenger Gold (ASX:CEL) and gold producer Austral Gold (ASX:AGD) have entered into a toll treatment agreement.
Under this agreement, Austral subsidiary Casposo Argentina Mining will process mineralised material from Challenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina.
Casposo has also committed to use its best commercial efforts, directly or through third parties, to secure the necessary funding for the refurbishment and commercial startup of the Casposo plant by 31 July 2025.
Consequently, as announced on 23 December, a US$7 million secured loan was obtained from Banco San Juan, located in Argentina.
Tyrus SA, an entity controlled by Eduardo Elsztain, currently holds a 4.33% interest in Challenger. Elsztain is Austral’s non-executive Chairman (and its majority shareholder) and a director of Casposo.
Austral understands that Elsztain’s beneficial equity interest in Challenger is projected to increase by some 8.79% leading to 12.74% interest, following completion of a private placement.
Austral is a gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars – production, exploration and equity investments.
Write to Adam Orlando at Mining.com.au
Images: Challenger
