Caravel Minerals (ASX:CVV) has secured an additional $15 million from the Regal Resources Royalties Fund through a new royalty agreement over the Caravel Copper Project.
The company will receive the funding in exchange for a 0.75% net smelter return royalty over the project, which is located approximately 150 kilometres north of Perth, Western Australia.
The funds will be applied towards the project’s feasibility study, as well as general corporate purposes.
As part of the agreement, Regal has also extended the maturity date of Caravel’s existing $15 million loan facility to 31 March 2028, with all other terms remaining unchanged.
Managing Director Don Hyma says the agreement validates Regal‘s ongoing confidence in the project.
“Combined with the extension of our existing facility… the additional royalty funding delivers less dilutive funding through 2027, enabling the company to progress the project and advance discussions with potential project partners,” Hyma says.
Caravel Minerals is developing the +25-year Caravel Copper Project in Western Australia. Considered the country’s largest underdeveloped copper project, it is expected to produce approximately 65,000 tonnes of contained copper, 15,000 ounces of gold, and 660,000 ounces of silver annually.
Write to Paula Fabe at Mining.com.au
Images: Caravel Minerals
