Challenger Gold (ASX:CEL) has secured US$7 million ($11.2 million) in financing to refurbish the Casposo plant for toll milling material from the Hualilan Project in Argentina.
The funding was secured by Austral Gold’s (ASX:AGD) subsidiary Casposo Argentina Mining, through a US$7 million secured loan from Banco San Juan.
Challenger Gold, which has a market capitalisation of $59.75 million, says these funds will be allocated to refurbish the plant, supporting the binding memorandum of understanding signed by the company to process mineralised material from the Hualilan Project.
Under the financing, the interest rate is 8% per year and has a 24-month term from the three loan disbursements with a six-month grace period each.
The company notes all disbursements, except for the initial US$1.5 million, require compliance with the allocated use of funds.
On 13 December 2024, Challenger Gold announced an independent audit confirmed the Casposo plant is well-maintained and sustainable for toll treatment of Hualilan ore.
The Casposo plant has a capacity of 300,000 tonnes per year, which is double of the company’s required 150,000 tonne annual commitment.
Casposo, located 170km from Hualilan, has historically produced over 323,000 ounces of gold and 13.2 million ounces of silver. During operations, the plant achieved an average annual production of 40,000 ounces of gold and 1.6 million ounces of silver at recoveries of 90% gold and 79% silver.
Challenger Gold is a gold and copper explorer focused on becoming an established gold producer. The company is developing two projects in South America.
Write to Aaliyah Rogan at Mining.com.au
Images: Challenger Gold
