Challenger Exploration Limited announced that it has executed an agreement to farm-in to the Colorado V tenement in Ecuador. The tenement covers 2,331 hectares (23.3 sq kms) and is located on the northern and eastern margins of the El Guaybo Tenement. The farm-in is subject to approval by CEL shareholders in accordance with Chapter 11 of the ASX Listing Rules. CEL intends to call a shareholders meeting to approve this farm-in as soon as it is practical to do so. Under the terms of the farm-in agreement, CEL will fund all exploration for the first 5 years to earn up to a 50% interest in any discovery it makes on the tenement. CEL and the current owner will then jointly fund a Definitive Feasibility Study and the ongoing development. The tenement is owned by Ecuadorian company Goldking Mining SA ("Goldking").