Caravel Minerals has secured a crucial water licence agreement and progressed its feasibility study, alongside raising $5 million to support the Caravel Copper Project's development in Western Australia.
- Option Agreement signed securing water licences and borefield land
- Feasibility study updates improve mine plan and tailings management
- Share placement raises $5 million from institutional and management investors
- Power connection studies underway with grid access offer expected mid-2025
- Environmental approvals progressing with resubmitted review document
Water Security Secured for Long-Term Operations
Caravel Minerals has taken a significant step forward in underpinning the sustainability of its Caravel Copper Project by entering into an Option Agreement to acquire Dalmeny Water Pty Ltd. This agreement secures existing groundwater extraction licences and pending applications, providing access to up to 18 gigalitres per year of water, more than sufficient to meet the project's needs. The arrangement also includes land access rights and an option to acquire the underlying private land, ensuring a stable water supply critical for mining and processing operations.
Feasibility Study Progresses with Cost and Environmental Improvements
The feasibility study has advanced with a focus on refining the mine plan and tailings management. Updates to pit designs, internal logistics, and ore delivery scheduling aim to enhance cost efficiency. Notably, the tailings facility design has evolved to incorporate waste rock and tailings reuse for embankment construction, reducing environmental impact and capital expenditure. Metallurgical testwork has confirmed metal recoveries and product quality, finalising the processing flowsheet and equipment selection.
Power Infrastructure and Land Acquisition Developments
Caravel continues to engage with Western Power to secure a 125MW grid connection, with technical studies progressing and an access offer anticipated by mid-2025. This aligns with broader regional infrastructure upgrades, including significant investments in transmission lines and terminals that will support the project's power demands. Concurrently, the company has secured options on over 1,000 hectares of freehold land, with ongoing discussions to acquire additional parcels necessary for construction and operations.
Environmental and Community Engagement Advances
The Environmental Review Document was resubmitted to the Western Australian EPA, addressing prior agency feedback with enhanced flora, fauna, and water modelling data. Caravel is actively engaging with local stakeholders, including landowners and government officials, to maintain transparency and support for the project. Community events and briefings underscore the company's commitment to social license and regional development.
Capital Raising and Strategic Partnerships
In October 2024, Caravel completed the first tranche of a $5 million institutional placement at $0.145 per share, with the second tranche pending shareholder approval. The capital raise, supported by both new and existing sophisticated investors as well as management, bolsters the company’s financial position, which stood at $7.7 million in cash reserves with no debt at the end of the quarter. Parallel strategic discussions with potential partners and offtake groups continue, reflecting growing market interest amid a favourable copper price environment.
Bottom Line?
With water security and funding in place, Caravel Minerals is poised to advance its feasibility study and move closer to development, though power connection and regulatory approvals remain critical milestones.
Questions in the middle?
- When will Caravel receive the formal grid power access offer and finalise power infrastructure commitments?
- How will ongoing environmental assessments impact the project timeline and permitting?
- What are the prospects and timelines for securing strategic partners and copper offtake agreements?