Challenger raises A$20m for South American gold
PERTH (miningweekly.com) – Junior Challenger Exploration has received firm commitments to raise A$20-million through a share placement to fund an exploration drive at its South American gold projects.
Challenger on Thursday said that it would issue 100-million shares, at a price of 20c each, to a range of domestic and international institutional, sophisticated and existing shareholders, under its existing placement capacity.
The placement price represented a 13% discount to Challenger’s last closing price, and a 13.5% discount to the company’s 15-day volume weighted average share price.
Proceeds from the placement will be used to expedite a 35 000 m drilling programme and a scoping study at the Hualilan gold project, in Argentina, and a 5 000 m drilling programme at Colorado V, in Ecuador, to allow for a Joint Ore Reserves Committee-compliant resource.
Proceeds will also go towards funding working capital and the cost of the offer.
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