Challenger Exploration Limited (ASX: CEL) (“CEL” or the “Company”) is pleased to announce 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.
CEL receives firm commitments to raise A$20m through the issue of 100 million shares at 20 cents each
Share offer was strongly supported by domestic and international institutions and sophisticated investors with bids received for substantially more than the amount raised
The Company can now rapidly advance both the high-grade Hualilan Gold Project in Argentina and the El Guayabo Gold/Copper Project in Ecuador
Proceeds from the equity raising will be used to:
expedite a 35,000 metre drilling program, scoping study, expand the footprint, and additional studies (mining and geophysics) at its flagship Hualilan gold project in San Juan, Argentina;
deliver a 5,000 metre drilling program at Colorado V designed to allow the reporting of a JORC compliant resource; and
fund working capital and costs of the offer
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 proceedsfrom the placement will be used to advance the Company’s high-grade Hualilan Gold Project in Argentina. This follows the Company’s recent high-grade results including 8.3m at 21.1 g/t AuEq, 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 (ASX release 8 July 2020).