Challenger Gold Ltd. has made major leadership appointments and secured AU$85 million in equity raising as it plans to accelerate its Hualilan gold project in Argentina.
Challenger appointed Peter Marrone as Chairman-elect, with his appointment set to steer the company towards commercial production.
Marrone is currently the chairman and CEO of Allied Gold Corp. Before Allied Gold, he served as executive chairman of Yamana Gold Inc.
Joining Marrone is former Yamana colleague Yohann Bouchard, who steps into the role of COO, bringing over 25 years of technical expertise. Current Chairman Eduardo Elsztain will transition to a Non-Executive Director role upon Marrone’s formal appointment.
“The addition of Peter Marrone to the Challenger Board as Chairman-elect and Yohann Bouchard as COO is transformational for the strategic direction of Challenger,” Elsztain said.
The A$85 million placement received strong backing from investors, alongside a combined A$10 million cornerstone investment from Marrone, other lead investors, and affiliates of current Chairman Eduardo Elsztain.
The capital injection will primarily fund resource growth drilling campaign at the Hualilan gold project, marking its first material extension program in several years.
Funds will also be allocated towards completing the Hualilan Definitive Feasibility Study (DFS) and advancing early capital works for standalone project development.
The placement shares are priced at 12 cents each. The capital raise is structured across two tranches, with the second tranche, director participation, and a proposed 20:1 share consolidation all subject to shareholder approval at an extraordinary general meeting in late June.
“The funds raised will enable the company to accelerate exploration at Hualilan with Challenger committing to its first material extension drilling campaign in several years,” Elsztain said.
In connection with the transaction, the company also intends to undertake a consolidation of its issued capital on a 20:1 basis, subject to shareholder approval to be sought at the forthcoming EGM.
