Cavalier Resources (ASX:CVR) has executed binding term sheets for US$18 million ($25.9 million) in project debt facilities to advance its Crawford Gold Project toward production.
The financing package comprises a US$13 million Gold Prepayment Facility from Javelin Global Commodities and a $5 million Gold Loan Facility from Ottomin Group, providing about $23 million in funding for the project.
“Execution of these binding project financing term sheets represents one of the most significant milestones in Cavalier’s journey since the company was established,” Interim CEO Daniel Tuffin says.
“Since day one, our focus has been on systematically advancing Crawford toward production while minimising shareholder dilution throughout that journey.”
According to Cavalier, the financing structure aligns repayments with future project cash flows and gold production, reducing reliance on equity funding while supporting project execution. The company says the funds will be used for site establishment, long-lead equipment procurement, project construction, and working capital.
Under the Javelin facility, the company will deliver approximately 6,999 ounces of refined gold bullion over a 20-month term with no cash interest and a 1.5% upfront fee. The facility includes a future offtake option over up to 50,000 ounces following completion.
The Ottomin facility requires principal repayment through three equal cash instalments of $1.67 million in months 10, 11 and 12, with no cash interest. The lender’s return is linked to the delivery of 1,166 ounces of gold and includes 1.75 million options exercisable at a 50% premium to the 30-day volume weighted average price.
Both lenders will rank equally as senior secured creditors over Crawford under an intercreditor arrangement. The facilities remain subject to completion of definitive documentation, customary due diligence, and satisfaction of conditions precedent.
The financing follows completion of Crawford’s updated Prefeasibility Study, execution of the native title and mining agreement, and completion of all stage one heritage surveys over the past 12 months.
Cavalier has entered a 45-day exclusivity period with Javelin to complete definitive documentation, pausing discussions with previously announced non-binding term sheet partner Raptor Capital International and other funding options.
Write to France Pinzon at Mining.com.au
Images: Cavalier Resources
