Challenger raises funds for exploration work
PERTH (miningweekly.com) – Junior Challenger Exploration has secured a A$22-million investment from resources investor Queen’s Road Capital Investment (QRC) in the form of unsecured convertible debentures.
The debentures are convertible into fully paid ordinary shares in Challenger at a price of 25c each, a 30% premium to the five-day volume weighted average share price of Challenger’s shares, prior to September 2.
Additionally, Challenger’s largest shareholder has also committed to a A$2.6-million investment in the company, pro-rata to its 12% shareholding. The shareholder will take 13.68-million shares in Challenger, at a price of 19c each.
“I am delighted to have QRC make an investment in Challenger. QRC is a recognised long-term investor with a track record of successful investments in the resource sector. QRC undertook extensive due diligence including a Hualilan site visit and their investment is an endorsement of Challenger's progress and potential,” said Challenger MD Kris Knauer.
“Our largest shareholder has been an active buyer on market and their pro-rata participation increases the amount raised to almost A$25-million and extends our runway well into 2024.”
Knauer said on Friday that Challenger was now funded to deliver on several important milestones including an updated mineral resource estimate (MRE) and scoping study at Hualilan project, in Argentina, plus a maiden MRE at El Guaybo in Ecuador.
The company will undertake an additional 50 000 m of drilling at Hualilan and 25 000 m of drilling and a maiden MRE for El Guaybo.
“The additional 50 000 m drilling at Hualilan will double the drill metres in the current resource estimate. It is a great outcome to achieve the funding required to complete this series of significant and value accretive milestones from two long term investors, at a significant premium to a traditional placement and the current market price,” said Knauer.
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