Challenger Gold Limited (ASX:CEL) Doubles El Guayabo Mineral Resource and Secures Investment Protection Agreement
Investment Protection Agreement
Challenger Gold Limited (ASX:CEL) has entered into an Investment Protection Agreement (IPA) with the Government of Ecuador for its 100% owned El Guayabo Project. The IPA secures US$75 million in investment from the company’s initial acquisition in 2019 through to the end of 2027. Key protections include regulatory stability, non-discriminatory treatment, property protection, and the resolution of disputes through international arbitration in London.
Mineral Resource Expansion
The IPA coincides with a significant increase in the El Guayabo Project’s Mineral Resource Estimate, which has risen from 4.5 to 9.1 million ounces gold equivalent (AuEq). This expansion positions El Guayabo as one of the larger undeveloped gold resources in South America. The updated resource includes 4.7 million ounces AuEq at El Guayabo and 4.4 million ounces AuEq at the adjacent Colorado V Project.
Executive Comments
Managing Director Mr Kris Knauer stated, “The completion of the Investment Protection Agreement is a significant development for the Project. The IPA provides certainty with respect to the legal framework governing the Project, ensuring stable mining regulations and fiscal terms, and securing our investment against potential changes.”
Recent Corporate Transactions
In related corporate activity, Lumina Gold Corp. (TSXV:LUM), owner of the Cangrejos Project adjacent to El Guayabo, has entered into a takeover by CMOC Group Limited at C$1.27 per share, valuing Lumina Gold at CAD$581 million. This move underscores the strategic importance and potential of the mineral-rich district.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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