Challenger Gold completes US$15M debenture tranche
- Challenger Gold secured gross proceeds under unsecured convertible debentures to bolster capital requirements.
- Following the announcement, Challenger Gold shares were down at $1.54.
- Funding will drive project-readiness activities and equipment down payments for its main mine development.
Challenger Gold (ASX:CEL) completed Tranche 1 of its unsecured convertible debentures offering to raise US$15 million.
This initial funding milestone follows agreements securing US$30.3 million in total commitments, with the board holding discretion to increase the total offering up to US$35 million.
The company stated that a substantial portion of the proceeds is intended for initial capital and project-readiness activities at the Hualilan development.
The expenditure plans cover down payments for long-lead-time equipment, detailed engineering, and ongoing project management work.
Following the announcement, the Challenger Gold share price was down at $1.54.
The debentures were issued in units of US$100,000 each with an initial conversion price set at $2.72 per share.
Completion of Tranche 2, which includes US$9.3 million from key insiders, remains subject to shareholder approval at a meeting targeted for late November.
