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Cavalier Resources advances funding talks with Raptor Capital for Crawford gold project

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By Colin Hay - 
Cavalier Resources ASX CVR Raptor Completes Technical Due Diligence
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Cavalier Resources (ASX: CVR) is set to begin final funding negotiations for the commencement of Stage 1 mining at its Crawford gold project in Western Australia.

The company entered into initial discussions with Raptor Capital International in February for a stream finance facility of approximately $17 million, which was subject to a number of conditions including due diligence studies.

With Raptor having confirmed its satisfactory completion of the technical due diligence, the parties will now progress toward finalising the terms of the finance facility.

Commercially attractive

“Raptor has confirmed that the Stage 1 open pit at the Crawford gold project is technically viable and commercially attractive following the completion of their due diligence, representing a major milestone for Cavalier,” chief executive officer Daniel Tuffin said.

“Whilst remaining non-exclusive at this point, both parties will now focus on finalising a binding agreement.”

Cavalier also confirmed that it had submitted all compliance reports, works approvals and applications required for the commencement of stage 1 mining and that its consultation with traditional owners regarding Native Title is ongoing.

Revised PFS

Cavalier recently undertook a revised pre-feasibility study (PFS), incorporating higher gold prices and an update of the mining and heap leach capital cost estimates that identified a number of positive outcomes.

The revised PFS generated a capital payback period of nine months and gross revenue of $103.6m, including royalties from gold production of 23,467 ounces.

The study estimated Phase 1 pre-production capital expenditure of $9m and an internal rate of return of 580%.

Stage 1 validated

“Raptor’s commitment to progress with finalising a binding agreement not only validates the Stage 1 open pit asset but also provides yet another significant step forward in the development of the greater Crawford gold project,” Mr Tuffin said.

“Their proposed investment will support the Stage 1 development and enhance our capacity to bring Crawford into production.”

Monaco-headquartered Raptor provides finance to low-cost, development-stage gold mining projects, enabling them to initiate or increase production through streaming financing.