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The funding will mainly be spent completing a prefeasibility study at Challenger's 2.8Moz Hualilan gold project in Argentina.
Whether that expenditure plan points to El Guayabo being spun-out in a separate vehicle remains to be seen, with Challenger managing director Kris Knauer saying that option was on the cards back in April.
Challenger noted today the El Guayabo project adjoins the 17Moz Cangrejos gold project owned by Lumina Gold where a PFS was recently completed, and that Lumina has an agreement with Wheaton Precious Metals for Wheaton to provide US$300 million financing via a gold stream.
El Guayabo is currently estimated to have 270 million tonnes at 0.52 grams per tonne gold equivalent, including 1.45Moz at 1gpt gold equivalent.
Shares in Challenger were down 25% to A12c in morning trade, capitalising the company at $133 million.
