Highlights

• At an assumed gold price of US$3,500 an ounce, the study shows a pre-tax net present value (5%.

• A roadmap published on 10 September 2026 targets first Phase 1 heap-leach production in early 2029, with construction.

• The quarterly update outlines operational developments and financial measures alongside upcoming milestones and unresolved conditions for investors.

• The quarterly update outlines operational developments and financial measures alongside upcoming milestones and unresolved conditions for investors.

Challenger Gold (ASX:CEL) — has reported that it secured commitments for US$30.3m (about A$43.2m) of new convertible debentures on 28 September 2026, after repaying a matured US$15m (about A$21m) debenture in full that month. In its quarterly report for the period ended 30 September 2026, the gold company said the first tranche of US$18m was completed on 23 October 2026, with the remaining US$12.3m still subject to conditions.

Terms of the new debentures

The debentures have a five-year maturity and an initial conversion price of A$2.72 per share. The coupon is 11% a year, of which 6.5% is paid in cash and 4.5% in cash or shares at the investor's election. The board has discretion to raise up to US$35.0m (about A$50m) in total.

The second tranche depends on conditions, including shareholder approval for US$9.3m to be issued to affiliates of related parties. The company is targeting a general meeting in late November 2026. The company also said the split of the debentures between debt and equity is provisional.

Cash and spending

Cash and liquid investments at 30 September 2026 were A$34.6m, made up of A$25.8m in cash and A$8.8m in mutual funds. Including the first tranche, the company's unaudited pro forma figure is about A$75.4m, which it expects to fund activities until mid-2027. Challenger said it is targeting the full financing of Hualilán by then. The pro forma balance sheet is illustrative. Total expenditure for the quarter was about A$27.6m, and administration costs were A$2.4m, up from A$1.4m in the prior quarter.

Hualilán project

Hualilán, in Argentina, is the company's main development asset. A pre-feasibility study published in May 2026 outlined a single open pit supplying an 8 million tonnes a year heap-leach circuit and a 1.5 million tonnes a year flotation plant. The mine life is 14.25 years, with a production target of 1.84 million ounces of gold equivalent.

At an assumed gold price of US$3,500 an ounce, the study shows a pre-tax net present value (5% discount rate) of US$1.45bn, a post-tax value of about US$1.10bn, a pre-tax internal rate of return of 45%, a payback of 2.25 years and all-in sustaining cost of US$1,618 an ounce. Capital cost is US$203m for the process plant and infrastructure, including US$35m of contingency, plus US$64m of pre-production mining. These are study outputs and depend on the assumed price.

A roadmap published on 10 September 2026 targets first Phase 1 heap-leach production in early 2029, with construction ramp-up from the second half of 2027. A 35,000-metre drilling programme with four rigs is under way, with an exploration update due in the fourth quarter of 2026 and updated resource and reserve estimates in the second half of 2027. The company is reviewing options to lift heap-leach recovery from 69.7% to about 74.7% and to remove about US$48m of power-line capital cost through third-party grid funding.

Ecuador, toll milling and management

The Casposo toll-processing arrangement ended on 1 October 2026. Recoveries were 88% for gold and 65% for silver, and the company said discussions on a possible ore-purchase agreement are not yet binding. It withdrew the proposed sale of its Ecuador assets, El Guayabo and Colorado V, and has begun a strategic and technical review. Peter Marrone is now Chairman and Yohann Bouchard is interim CEO and COO, following Kris Knauer's retirement on 31 July 2026.

Risks

About 21.2% of the production target relies on Inferred Resources, which have low geological confidence, so production is not assured. Toll-milling results showed the near-surface high-grade zones were less continuous than modelled. The second debenture tranche is conditional, and the company's forward-looking statements are uncertain.