Challenger Exploration has completed a placement, raising $5.6m (A$8.55m) through the issuance of 66,377,283 shares.

The placement was priced at $0.085 a share, marking a 6% premium over the last trading price of $0.08 and a 9% premium to the 20-day VWAP of $0.078.

It also included a one-for-one option exercisable at $0.14 per share over the next 12 months.

This move has resulted in an affiliate of Argentine real-estate developer Eduardo Elsztain's group acquiring a 5% stake in Challenger Exploration.

Elsztain has also hinted at plans to take a larger stake in the company, subject to a more detailed due diligence process.

As part of the placement agreement, Challenger Exploration will appoint a non-executive director nominated by the new shareholder to its board of directors.

Additionally, the new shareholder will have the right to appoint a non-voting observer to attend certain board meetings, either alongside or in place of the nominated director.

The funds raised through this placement will be allocated to expedite exploration and development activities at the company's Hualilan Gold Project, in addition to providing working capital.

Challenger Exploration executive director Sonia Delgado said: "As executive director of Challenger Gold, I am delighted to welcome Mr Eduardo Elsztain as a new shareholder of our company.

“This partnership not only reinforces our strategic position in San Juan, Argentina, but also underscores the confidence and shared vision in the potential of our gold project within Argentina.

“The investment is a testament to the hard work of our team and the robust potential of our exploration efforts. We look forward to collaborating closely to unlock value for all stakeholders and contribute positively to the local community and economy.”