Challenger Gold Raises $24 Million Via Convertible Debentures at 30% Premium

MT Newswires Live
09/28

Challenger Gold (ASX:CEL) entered into definitive subscription agreements to offer new unsecured convertible debentures for aggregate gross proceeds of $24 million, with additional debentures potentially issued for up to $6.3 million more, for total gross proceeds of up to $30.3 million, according to a Monday Australian bourse filing.

The company said the debentures are convertible into ordinary shares at AU$2.72, a 30% premium to the 20-day volume-weighted average price, with a five-year maturity from the initial completion date.

The debentures carry an 11% annual coupon, comprising 6.5% payable in cash and 4.5% payable in cash or shares at the investor's election, with proceeds to be applied for general working capital purposes, the filing added.

The company expects the initial tranche of $15 million to complete in early October, while a second tranche of $9 million by Peter Marrone and Dolphin Real Assets Fund SPC, an affiliate of Eduardo Elsztain, is subject to shareholder approval, it added.

The company's shares fell 2% in recent Monday trade.

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