Challenger Gold Limited (ASX:CEL) has announced a series of strategic moves that significantly advance its Hualilan Gold Project in Argentina.

The company has successfully completed a US$6.6 million placement and finalised a crucial toll processing agreement, paving the way for early cash flow opportunities.

The strategic placement was completed with Inversiones Financieras del Sur S.A. (IFISA), part of the Elsztain Group.

Eduardo Elsztain is now Challenger’s largest shareholder, with a 12.7 per cent stake in the company.

In a move to strengthen its leadership, Challenger has appointed Eduardo Elsztain as Non-Executive Chairman and Saul Zang as Non-Executive Director.

These additions are expected to bring valuable international business and mining expertise to the company’s board.

A key development is the finalisation of a toll processing agreement, which secures processing for 450,000 tonnes of material over three years at the Casposo Plant in Argentina.

The plant is set to process high-grade material, with historical recovery rates averaging 90 per cent for gold and 79 per cent for silver.

Challenger has identified starter pits containing 478,000 tonnes of material, which includes 85,550 ounces of gold and 495,334 ounces of silver available for processing.

This agreement positions the company to capitalise on current high gold prices and generate early cash flow to fund further project development.

These strategic moves mark significant progress towards the commercialisation of Challenger’s flagship Hualilan Gold Project, potentially accelerating its path to production and enhancing shareholder value.