Challenger Gold has secured US$24 million in unsecured convertible debentures to advance its Hualilán gold development in Argentina. The company has entered definitive subscription agreements for the offering, with the potential to issue an additional US$6.3 million of debentures, bringing total gross proceeds to US$30.3 million.
The first US$15 million tranche is expected to complete in early October, while the second US$9 million tranche, involving Peter Marrone and Dolphin Real Assets Fund SPC, an affiliate of Eduardo Elsztain, is subject to shareholder approval targeted for the end of November.
Challenger Gold’s financing is supported by prominent investors, including Peter Marrone, founder of Yamana Gold, and Eduardo Elsztain, chairman of Argentine real estate group IRSA. Marrone brings over 35 years of mining, business, and capital markets experience, while Elsztain adds significant Argentine business and investment experience. Notably, Marrone founded Yamana Gold in 2003 and now serves as chairman and CEO of Allied Gold, further solidifying his expertise in the mining sector.
These five-year unsecured debentures offer an 11% yearly interest rate, consisting of 6.5% paid in cash plus 4.5% paid in cash or Challenger stock at the holder’s choice. They are convertible into CEL shares at $2.72, which is a 30% premium over the 20-day VWAP prior to September 16.
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The US$24 million in funds will mainly go toward consultant services, detailed engineering, downpayments on long-lead equipment, and general working capital. This is part of a larger initial US$184 million needed to bring the Phase 1 heap-leach operation online by early 2029.
Challenger’s financing follows the company’s recent roadmap to commercial production at Hualilán, which put detailed engineering, early works, and long-lead procurement on the critical path to the targeted early-2029 start. The development case is underpinned by the May 2026 PFS, which outlined a 1.84Moz AuEq production target over 14.25 years and a post-tax NPV5 of US$1.101 billion at a US$3,500/oz gold price.
It is worth noting that Marrone’s experience with Yamana Gold, which was acquired by Pan American Silver in 2023 after its Canadian assets were sold to Agnico Eagle, brings valuable insight into the complexities of large-scale mining operations and the importance of strategic partnerships.
This article was developed in collaboration with Challenger Gold, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
