Austral Gold in Talks with Challenger Gold to Transition from Toll Processing Agreement to Mineralized Material Purchase Deal

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Austral Gold (ASX:AGD) is in talks with Challenger Gold (ASX:CEL) regarding a transition from the current toll processing agreement to an arrangement under which Austral would purchase mineralized material from Challenger's Hualilan project in Argentina, according to a Thursday Australian bourse filing.

Casposo processed 39,342 tonnes of Hualilan material during May and June at recovery rates above 85%, and tolling fees have been received in full. The fixed monthly fees for July and August have also been received.

Any new arrangement is expected to be non-exclusive.

Challenger's shares fell 1% in recent trading on Thursday.

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