- Queen’s Road Capital (QRC) has agreed to invest US$15M in Challenger Exploration
- The company will purchase convertible debentures with a 4-year term and a 9-per-cent annual coupon
- Challenger is a gold explorer and developer with high-potential projects in Ecuador and Argentina
- It will use proceeds from the investment to further a maiden resource estimate and initial preliminary economic assessment
- Queen’s Road Capital is a leading financier to the global resource sector
- Queen’s Road Capital (QRC) is up by 7.58 per cent trading at $0.71 per share
Queen’s Road Capital (QRC) has agreed to invest US$15M in Challenger Exploration.
The company will purchase convertible debentures with a 4-year term and a 9-per-cent annual coupon. The interest is payable quarterly, 7 per cent in cash and 2 per cent in shares.
Challenger (ASX:CEL) is a gold explorer and developer that owns the Hualilan Gold Project in Argentina. In June 2022, it released a maiden resource of 2.1 million ounces at Hualilan, half of which is contained in a high-grade skarn component (6.3 million tonnes at 5.6 g/t gold equivalent).
Challenger is moving Hualilan towards production with an initial preliminary economic assessment due in the first half of 2023.
The investee also owns the El Guayabo Gold-Copper Project in Ecuador, which extends from the 11.5-million-ounce Cangrejos Gold-Copper Deposit owned by Lumina Gold. A maiden resource at El Guayabo is scheduled for the first half of 2023.
Proceeds from the investment will fund exploration and development activities at both projects.
The parties expect the transaction to close in the next few days.
“Challenger’s Hualalin Project ranks among the most exciting gold discoveries of the last three years,” stated Warren Gilman, Chairman and CEO of Queen’s Road Capital. “Combined with our recent Contango ORE investment, our gold portfolio now totals US$35 million, yielding in excess of 8.4 per cent annually, representing a significant and growing part of our business.”
Queen’s Road Capital is a leading financier to the global resource sector.
Queen’s Road Capital (QRC) is up by 7.58 per cent trading at $0.71 per share as of 10:42 am EST.