Slide 1: Equity Capital Raising Presentation
Equity Capital Raising Presentation | July 2020 | ASX : CEL For personal use only Hualilan Gold Project : Cerro Sur looking north to Cerro Norte Challenger Exploration Limited Argentina and Ecuador Gold / Copper Projects
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is For personal use only released, published or distributed should inform themselv
Slide 3: Important Notices and Disclaimer
Important Notices and Disclaimer For personal use only DISCLAIMER This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors me
Slide 4: Overview – two complementary assets being advanced aggressively
Overview – two complementary assets being advanced aggressively For personal use only Our Aspiration is to become a globally significant gold producer which our current assets will support Hualilan Gold Project El Guayabo Gold/Copper Project Argentina – earning 75% Ecuador – earning up to 100% ▪ loc
Slide 5: Corporate Overview – Desire to accelerate high impact CY2020 program
Corporate Overview – Desire to accelerate high impact CY2020 program For personal use only Corporate Key Executives ASX Ticker CEL Fletcher Quinn Kris Knauer Scott Funston Stuart Munroe Sergio Rotondo Share Price (10 July 2020) 23c Chairman CEO CFO Exploration Mgr COO Current Shares on Issue 548.7m
Slide 6: Hualilan Gold Project – New Discovery of Intrusion-hosted Gold
Hualilan Gold Project – New Discovery of Intrusion-hosted Gold For personal use only ► GNDD-025 : 50m at 1.4 g/t Au, 3.4 g/t Ag from 53m including 37m at 1.8 g/t Au, 4.2 g/t Ag from 53m Jose Maria Lundin Group ► this new discovery in dacite intrusives is contiguous to, and underlies, the existing hi
Slide 7: Significant Progress - material upside in the current program
Significant Progress - material upside in the current program For personal use only ► 188 historical drill holes for 15,023m from 1984-2006 then a 15 year dispute with ownership fragmented Proposed ► CEL’s maiden 1,500m drill program extremely Proposed successful. Extended mineralisation in multiple
Slide 8: High-grade mineralisation remains open in all directions - limited by drilling
High-grade mineralisation remains open in all directions - limited by drilling Mineralisation at Hualilan comprises 2 distinct orientations For personal use only Mineralisation outcrops at surface Historical drill holes 04-HD-33, 34 & 35 were all controlled by regional east-west faults drilled well
Slide 9: Conceptual target in the intrusives covering 1km strike
Conceptual target in the intrusives covering 1km strike under the high-grade mineralisation with the potential to be much larger For personal use only ► GNDD-051 (assays pending) was completed to test this conceptual target 100m along strike and successfully intersected 50 metres of altered dacite f
Slide 10: Porphyry targets are contiguous to and directly underlie the high-grade
Porphyry targets are contiguous to and directly underlie the high-grade For personal use only Distribution of the high-grade skarn mineralisation (red) and the dacite porphyry (pink) - note proximity of the porphyry dacite to the high-grade skarn mineralisation - skarn mineralisation remains open do
Slide 11: New bulk gold Discovery at Colorado V in Ecuador
New bulk gold Discovery at Colorado V in Ecuador For personal use only Colorado V Concession – 23.3 square kilometres (Dec 2019) ► CEL earning a 50% interest in any discovery >150,000 ounces by funding exploration over the next 5 years ► extensive and high-quality historical exploration program ► si
Slide 12: Colorado V - First Assays Confirm Discovery of a Large Gold System
Colorado V - First Assays Confirm Discovery of a Large Gold System For personal use only Initial Observations: Colorado V historical drill core ► 56 historical drill holes for a total of 21,472 metres of drilling ► limited historical assaying focussed on identifying high-grade mineralisation to fee
Slide 13: Aim is to generate a JORC Resource before any significant expenditure
Aim is to generate a JORC Resource before any significant expenditure ► located at the northern end of a 500-metre strike zone defined by small scale For personal use only underground mine working ► it does not appear to be traditional porphyry mineralisation: - <1% sulphides and mineralisation appe
Slide 14: Large scale bulk gold system surrounding the existing high grade workings
Large scale bulk gold system surrounding the existing high grade workings For personal use only ► discovery is located on a 500-metre ZK0-2: 151m at 0.9 g/t Au, 3.8 g/t Ag trend defined by small scale ZK1-5: 146m at 1.5 g/t Au, 1.7 g/t Ag underground mine workings ► mineralised zone appears to be: •
Slide 15: Untested anomalies analogous to the adjoining Moz Cangrejos deposit
Untested anomalies analogous to the adjoining 17 Moz Cangrejos deposit For personal use only ► number of high tenor gold and 500m porphyry style mineralisation copper in soil anomalies > 1km2 incl 200m with visible chalcopyrite D in size ► historical drilling has not Panel samples main adit: optimal
Slide 16: Company Strategy
Company Strategy For personal use only Our Aspiration is to become a globally significant gold producer Company Strategy Hualilan Gold Project El Guayabo Project Argentina Ecuador ▪ Hualilan to provide a high-grade low ▪ high-grade historical resource ▪ exciting traditional near surface capex operat
Slide 17: Capital Raising – Overview
Capital Raising – Overview For personal use only • Placement using the Company’s capacity under ASX LR 7.1 & 7.1A to raise A$20 million. The Offer Structure & Size Company will not accept oversubscriptions • Offer price of A$0.20 per New Share represents a: • 13.0% discount to the last closing price
Slide 18: Capital Raising – Uses of Funds
Capital Raising – Uses of Funds For personal use only Uses of Funds A$m Hualilan Project – 35,000m drilling program 9.5 Hualilan Project – Scoping Study 0.5 Hualilan Project – Additional mining studies, metallurgy, and geophysics 1.0 Hualilan Project – farmin spend to expand footprint 2.0 Colorado V
Slide 19: Capital Raising – Timetable
Capital Raising – Timetable* For personal use only Event Time (AEST) / Date CEL trading halt 13 July 2020 Transaction announced and CEL resumes trading 16 July 2020 Settlement of Placement 22 July 2020 Commencement of trading of Placement shares on the ASX 23 July 2020 *Timetable above is indicative
Slide 20: Key Risks – Specific
Key Risks – Specific For personal use only Economic conditions The future exploration activities of the Company may be affected by a range of factors including activities of parties with overlapping tenure, geological conditions, limitations on activities due to seasonal weather patterns or adverse
Slide 21: Key Risks – Specific
Key Risks – Specific For personal use only Future capital needs and additional funding The Company will need to raise further capital (equity or debt) in the future. No assurance can be given that future funding will be available to the Company on favourable terms or at all. If adequate funds are no
Slide 22: Key Risks – Specific
Key Risks – Specific For personal use only Environmental Risk Development of any of the Company's Projects will be dependent on the Company satisfying relevant environmental guidelines and, where required, being approved by government authorities. Failure to obtain such approvals will prevent the Co
Slide 23: Key Risks – General
Key Risks – General For personal use only Securities investments and share market conditions There are risks associated with any securities investment. The trading prices of securities trade fluctuate in response to a number of factors. Furthermore, the stock market, and in particular the market for
Slide 24: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered For personal use only or sold in any country outside Australia except to the extent permit
Slide 25: International Offer Restrictions
International Offer Restrictions This document has been given to you on the basis that you are (i) an existing holder of the Company’s shares, (ii) an "institutional investor" (as defined in the SFA) or (iii) an "accredited investor" For personal use only (as defined in the SFA). In the event that y
Slide 26: Challenger Exploration Limited contact details
CHALLENGER EXPLORATION LIMITED (ASX:CEL) ACN 123 591 382 Level 1, 1205 Hay Street, West Perth WA 6005 | P: +61 8 6380 9235 For personal use only Kris Knauer Scott Funston Elvis Jurcevic Jane Morgan CEO & Managing Director CFO & Finance Director Investor Relations Media Relations +61 411 885 979 +61