Australian company Challenger Gold (ASX: CEL) announced the completion of a strategic placement for US$6.6 million with an entity controlled by Eduardo Elsztain, who becomes the company's largest shareholder with a 12.7% stake. Additionally, the initial payment of US$2 million was made under the Toll Processing Agreement with Casposo Argentina Mining Limited, securing the processing of 150,000 tons of Hualilán material annually for three years, with a total guaranteed capacity of 450,000 tons.
By Panorama Minero
As part of this transaction, Challenger Gold plans to appoint Eduardo Elsztain as non-executive chairman of the board and Saúl Zang as non-executive director. Elsztain is a renowned Argentine businessman with three decades of experience building a diversified portfolio of real assets, including rental and mixed-use properties in Argentina, agricultural land in Latin America, and mining interests both domestically and abroad. Meanwhile, Saúl Zang is a lawyer graduated from the University of Buenos Aires and co-founder of the law firm Zang, Bergel & Viñes Abogados. A specialist in corporate law, mergers and acquisitions, financial operations, and real estate and agricultural business, Zang holds key positions as vice-chairman of IRSA S.A. and Cresud SACIF, and serves as a member of the board of Banco Hipotecario S.A.
Details of the Strategic Placement
The US$6.6 million placement was carried out through Inversiones Financieras del Sur S.A. (IFISA), part of the Elsztain group. The company issued 147,726,678 ordinary shares at a price of 4.5 cents per share, generating a net income of A$6,647,700.50. Each share includes a warrant for the purchase of ordinary shares with a two-year exercise period from the closing date.
The warrants can be exercised at an exercise price equivalent to the placement price plus 10% during the first 12 months, and an additional 20% after that period. However, they cannot be exercised if they result in a holding greater than 19.99% of the voting rights, unless CEL's shareholders approve the issuance in accordance with applicable legal provisions.
Expansion and Projections
With this operation, Challenger Gold secures key financing for the development of the Hualilán project while strengthening its operational capacity through the agreement with Casposo, ensuring ore processing and strengthening its shareholder base with strategic partners. The inclusion of Elsztain and Zang on the board represents a significant boost to the company's growth strategy.
