CEL to acquire 100% of El Guayabo concession – Ecuador

Challenger Exploration

Challenger Exploration (ASX: CEL) (“CEL” or the “Company”) is pleased to announce that revised terms for the acquisition of 100% El Guayabo Copper Gold concession in Ecuador have been finalised.


  • Terms renegotiated to move to 100% of the El Guayabo concession immediately.

  • The El Guayabo concession is a world class exploration project and contains numerous ore grade historical intercepts which have never been followed up including (refer Table 1):

    • 156m at 2.6 g/t gold, 9.7 g/t silver, 0.2% copper

    • 112m at 0.7 g/t gold, 14.7 g/t silver, 0.6% copper

    • 116m at 0.6 g/t gold, 8.9 g/t silver, 0.4% copper

  • Geophysics by CEL has identified a number of significant intrusive breccia targets and three potential porphyry centres, all undrilled, and all near surface.

  • Acquisition of 100% negotiated via the issue of 18 million CEL shares, which will not be available to trade until July 2021, compared to the original 180 million share consideration.

  • Accelerated purchase saves two years of earn-in expenditure and allows CEL to control minimum expenditure at the project while the short-term focus in Ecuador is Colorado V.

  • ASX has advised shareholder approval will be required.

As announced on 29 April 2019, the Company had conditional rights to acquire up to a 100% interest in the El Guayabo Project pursuant to minimum capital expenditure of A$5M within 3 years from listing to earn a 51% interest. Following this, the Company could issue 180,000,000 Earn-in Shares to move to 100% of the project.

/Public Release.