USD $4,127.96
Goldman New revenue stream secured for Austral Gold through Challenger partnership.
Established gold producer Austral Gold Limited (ASX:AGD) has announced that its subsidiary, Casposo Argentina Mining Ltd. (“Casposo”), has executed a Toll Treatment Agreement with ASX-listed Challenger Gold Limited (ASX:CEL) following a Binding Memorandum of Understanding signed earlier this month.
The agreement will see Casposo process mineralised material from Challenger’s Huailian project at the Casposo Plant in San Juan, Argentina. The transaction is set to deliver a new revenue stream for Austral Gold, including a US$3 million fixed payment (US$2 million payable by 2 January 2025, with the remaining US$1 million due within two years), a US$110,000 monthly fee, and an incentive fee linked to recovery margins.
Operations under this agreement are anticipated to commence in the second half of 2025.
Austral secured the necessary funding for the refurbishment and commercial restart of the Casposo Plant via a US$7 million secured loan obtained from Banco San Juan S.A. in Argentina, announced on 23 December 2024.
Austral’s Chief Executive Officer, Stabro Kasaneva said:
We are pleased to execute the Toll Treatment Agreement and with the US$7 million secured loan from Banco San Juan, begin the process of refurbishing the Casposo Plant.
