Challenger Gold secures US$24M debenture agreement
- Challenger Gold entered into subscription agreements for US$24 million in unsecured convertible debentures, with an option to raise up to $30.3 million.
- Shares were down at $1.95 following the funding announcement.
- The business will allocate proceeds towards general working capital purposes.
Challenger Gold (ASX:CEL) secured agreements for US$24 million in convertible debentures to bolster working capital.
The debt package includes potential extra issues to push total proceeds to US$30.3 million.
Yohann Bouchard, COO and Interim CEO, said, “The strong support received for the Offering demonstrates the compelling opportunity presented by the Hualilán Project and the growing momentum behind Challenger’s development strategy.”
The debentures carry a five-year maturity and feature an 11% annual coupon.
Following the announcement, the Challenger Gold share price was down at $1.95.
The business is advancing its core Hualilán Gold Project in Argentina towards targeted commercial production by 2029.
A May pre-feasibility study outlined a 14-year mine life for the flagship project.
