Challenger Gold secures investment protection agreement with Ecuador Government for El Guayabo Project

Challenger Gold (ASX:CEL) has signed an investment protection agreement with the Government of Ecuador for its 100% owned El Guayabo Project, providing essential legal and investment protections.

The agreement, covering up to US$75 million ($116.6 million) in investment, guarantees stability in regulatory frameworks, international arbitration for dispute resolution, and protections against investment confiscation.

It spans an initial term of eight years, with the possibility of renewal, and covers expenditures from the company's acquisition of the project in 2019 through 2027.

Key benefits include legal certainty, non-discriminatory treatment, and property protection, with the added security of arbitration in London under the International Chamber of Commerce’s rules.

Challenger Gold's Managing Director, Kris Knauer, emphasised the significance of the IPA, noting its role in ensuring stable mining regulations and fiscal terms, crucial for advancing the project.

The announcement comes on the heels of a major resource upgrade for Challenger Gold’s Ecuador assets, with the mineral resource estimate for El Guayabo and Colorado V projects increasing to 9.1 million ounces of gold equivalent.

The boost solidifies the projects as some of the largest undeveloped gold resources in South America, situated near Lumina Gold's Cangrejos project, which has drawn significant corporate interest.

Challenger Gold is now exploring monetisation strategies, including potential TSX listings, outright sales, or strategic partnerships to unlock the value of its Ecuador projects.

At the time of reporting, Challenger Gold's share price was $0.080.