PERTH (miningweekly.com) – ASX-listed Challenger Exploration has announced a A$42.1-million capital raise to fund the acquisition of the remaining 25% interest in its Hualilan gold project, in Argentina.

The company on Tuesday told shareholders that it has been formally granted the 20.6 km² Ayen exploration licence surrounding the existing Hualilan mining licences, and has been awarded three additional exploration licences over 12.6 km² adjoining the new Ayen exploration licence.

Farm-in transactions have also been concluded over an additional 46 km² of concession, which covers the strike extent of the Hualilan trend north and south of the new Ayen exploration licence.

“This is a landmark moment for Challenger. We now have a significant land position surrounding Hualilan, which has the hallmarks of becoming a district scale gold play,” said Challenger MD Kris Knauer.

“Successful drilling results to date at Hualilan have come from a 2 km zone defined historically, with the rest of the Hualilan trend virtually unexplored. This award allows us to follow the obvious extensions outside our current mining leases plus test a number of exploration targets on the 18 km greater Hualilan trend now under our control.”

Meanwhile, Challenger on Tuesday told shareholders that it has received firm commitments from sophisticated, professional and institutional investors for the placement of 150.5-million new shares, at a price of 28c each.

The offer price represents a 22.2% discount to Challenger’s last closing price on May 6, and an 18.4% discount to the company’s five-day volume weighted average share price.

Knauer said that the placement demonstrated clear support for the Hualilan gold project and the increased footprint.

“Post placement, we are strongly funded for further exploration and development activities, and we thank our new and existing shareholders for their ongoing support.”

Proceeds from the placement will go towards the acquisition of the remaining 25% interest in the gold project, an additional 120 000 m of drilling, and studies ahead of a definitive feasibility study.