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Queen's Road Capital Announces Investment in Challenger Exploration Ltd.
Hong Kong, Hong Kong--(Newsfile Corp. - September 9, 2022) - Queen's Road Capital Investment ...
About this update from Queen's Road Capital Investment Ltd.
[{"type":"text","content":"Queen's Road Capital Announces Investment in Challenger Exploration Ltd.Hong Kong, Hong Kong--(Newsfile Corp. - September 9, 2022) - Queen's Road Capital Investment Ltd. (TSX: QRC) (the \"Company\" or \"QRC\") is pleased to announce that it has entered into an agreement with Challenger Exploration Ltd. (ASX: CEL) (\"Challenger\") whereby the Company will purchase US$15,000,000 of convertible debentures to be issued by Challenger. QRC's investment is being made concurrent with a A$2.6 million equity private placement by Challenger's largest shareholder at A$0.19 per share.The convertible debentures will have a 4-year term, carry a 9% coupon, a 3% establishment fee and will be convertible into Challenger common shares at a price of A$0.25. The interest is payable quarterly, 7% in cash and 2% in shares at the 20-day volume weighted average price prior to each interest payment date.Challenger is a gold exploration and development company that owns the Hualilan gold project located in San Juan Province, Argentina. Hualilan is a historic high-grade gold district with a mining history dating back to the colonial era. In June 2022, Challenger 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 Au equivalent). Challenger has doubled the meters of drilling since the resource calculation and assays have demonstrated that the mineralization continues both at depth and in a both directions along strike. Challenger is aggressively moving Hualilan towards production with further drilling ongoing, an initial preliminary economic assessment due in the first half of 2023 and the beginning of permitting through the Environmental Impact Assessment.Challenger also owns the El Guayabo gold-copper project in Southern Ecuador. The project borders the 11.5 million ounce Cangrejos gold-copper deposit owned by Lumina Gold Corp. and drilling so far has confirmed the geological extension onto the El Guayabo property. A maiden resource at El Guayabo is scheduled in the first half of 2023.The proceeds from the convertible debenture investment and the private placement are expected to be used to fund exploration and development activities at the Hualalin and El Guayabo projects.Warren Gilman, Chairman and CEO of QRC commented: \"Challenger's Hualalin project ran...