Challenger Exploration Limited announced that it has received firm commitments to raise A$20 million (before costs) through the issue of 100 million ordinary shares at a price of 20 cents per share under the Company’s existing ASX Listing Rule 7.1 and 7.1A placement capacity (Placement). The placement was completed at $0.20 per share, a 13% discount to the last closing price of $0.23 and a 13.5% discount to the 15 Day VWAP of $0.2314.
The placement was strongly supported by a group of domestic and international institutions,sophisticated investors, and existing shareholders. It was closed ahead of schedule with bids for substantially more than the amount raised. The placement was co-managed by Peloton Capital, Henslow and Foster Stockbroking and will settle on 22 July 2020.
The proceeds from the placement will be used to advance the Company’s high-grade Hualilan Gold Project in San Juan province. This follows the Company’s recent high-grade results including 8.3m at 21.1 g/t AuEq (Gold Equivalent), 3.8m at 11.6 g/t AuEq, and 4.5m at 8.9 g/t AuEq (ASX Release 17 June 2020), and the discovery of a new style of porphyry hosted gold mineralisation with drill hole GNDD-025 returning 50m at 1.4 g/t gold, 3.4 g/t silver with the intersection open at depth.
The Company will expedite a 35,000 metre drilling program at Hualilan involving multiple rigs. This program will be designed to drill out the main two kilometre strike extent which contains the existing historical resource (open in all directions), and the new porphyry hosted discovery. Additionally, the program will target extensions to this high-grade mineralisation and the new porphyry discovery further north and south along strike. The Company intends to release a maiden Resource to JORC standard for the Hualilan Gold Project this calendar year.
Challenger Exploration will now also undertake some 5,000 metres of drilling in Ecuador. This drilling is planned to follow up, and twin holes for JORC reporting, at the Company’s recently discovered large-scale gold system at Colorado V in Ecuador. Results include – 146m at 1.5 g/t gold, 1.8 g/t silver, containing a higher grade core of 87m at 2.1 g/t gold, 1.9 g/t silver and 134m at 1.0 g/t gold and 4.1 g/t silver from a 500 metre trend defined by underground mine workings.
