The company says the move will diversify the share register into international markets as it focuses on developing the Hualilan gold project. Pic: via Getty Images.
Mining
Challenger Gold has commenced trading on the US OTCQB venture market under the ticker code CLLEF as of market open Tuesday 26 September.
The company’s goal is to become a globally significant gold producer.
The monster 4.5Moz gold equivalent resource announced in June this year for El Guayabo in Ecuador, along with an existing 2.8Moz at Hualilan in San Juan, Argentina, transformed Challenger Gold (ASX:CEL) into a two-project company.
Both assets remain ‘open’, which means there is plenty of room to grow.
The strategy is for Hualilan to deliver a high-grade low capex operation in the near term while Challenger plans a larger bulk tonnage operation at El Guayabo.
A scoping study at Hualilan is underway, with the company eyeing lower costs and increased metal production after recent metallurgical testing demonstrated excellent recoveries of gold and silver using traditional sodium cyanide leaching.
Meanwhile, at El Guayabo recent channel sampling has indicated the potential to significantly increase the higher grade 1.5Moz portion of the resource.
Results from channel sampling and pending drill assays will be included in upcoming resource update.
The cross trading of the company’s ordinary shares on the OTCQB is expected to provide enhanced benefits for investors, including easier trading access in the US, increased liquidity, greater access to trading to a broader geographic and more sophisticated pool of potential investors.
The company says it will also have the benefit of being better positioned to engage with a network of US investors, investor and media relations partners and data distributors.
Challenger MD Kris Knauer told Stockhead the US listing would be a key plank in expanding the company’s investor base — particularly important given the company’s presence in the States with two directors, including Chairman Sergio Rotondo.
“We are delighted to begin trading on the OTCQB,” Knauer said.
“We believe this will help increase our visibility and accessibility to a broader audience and diversify the share register into international markets as we continue to focus on our Hualilan Gold Project.”
This article was developed in collaboration with Challenger Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
