Austral Gold and Challenger Cancel Toll Agreement

09:41 AM EDT, 10/02/2026 (MT Newswires) -- Austral Gold (AGLD.V, ASX: AGD) terminated the toll processing agreement with Challenger Gold, it said late Thursday. Challenger agreed to pay Casposo, Austral Gold's unit, $1.0 million, representing the deferred balance of the initial fee under the toll agreement as part of the termination. The parties have mutually released each other from all other claims arising out of or in connection with the agreement and its cancellation. The company does not expect a material financial impact in the current period from not processing mineralized material under the deal as Casposo continues to process its own material from its own mining operations. The parties have also agreed to continue good-faith discussions on a potential agreement for Casposo to buy mineralized material from the Hualilan project, and other potential commercial opportunities. Shares of the company closed unchanged at CA$0.15 Thursday on the TSX Venture Exchange.