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.