Caravel Secures $15M Loan with 10% Interest to Fund Critical DFS

Strategic Funding Secured

Caravel Minerals Limited (ASX – CVV) has taken a decisive step forward in advancing its Caravel Copper Project by securing a $15 million secured loan facility from Regal Resources Royalties Fund. This funding is earmarked specifically for the completion of the Definitive Feasibility Study (DFS), a pivotal milestone that will underpin the project's development and future financing arrangements.

The loan carries an 18-month term with a 10% annual interest rate, compounded quarterly and capitalised to maturity. Notably, Caravel has the flexibility to repay the loan in cash at any time or convert the outstanding balance into a 0.75% net smelter royalty on the project, a structure that avoids equity dilution and preserves shareholder value.

Advancing Australia’s Largest Undeveloped Copper Project

Located approximately 150 kilometres north of Perth, Western Australia, the Caravel Copper Project is poised to become a significant contributor to the global copper supply. The project is designed around conventional open-pit mining and a proven copper concentrator, targeting annual production of around 65,000 tonnes of contained copper metal, alongside gold, silver, and molybdenum by-products.

Completion of the DFS will provide critical technical and economic certainty, enabling Caravel to engage with potential partners and financiers with greater confidence. The recent metallurgical testwork and simplified process design have already enhanced the project's robustness ahead of the Definitive Engineering Study.

Non-Dilutive and Flexible Financing

The loan agreement with Regal Resources Royalties Fund offers Caravel a low-risk and flexible funding pathway. Unlike traditional equity raises, this facility does not dilute existing shareholders’ stakes. The option to convert the loan into a royalty interest aligns the interests of both parties, potentially providing Regal with a long-term revenue stream while enabling Caravel to focus on project advancement.

Managing Director Don Hyma highlighted the strategic nature of the funding, emphasizing its role in strengthening Caravel’s financial position and supporting the delivery of significant shareholder value. The company remains actively engaged with potential project partners and off-takers, with the DFS completion serving as a catalyst for these discussions.

Looking Ahead

With this funding secured, Caravel Minerals is well-positioned to progress the DFS over the coming months. The study’s outcomes will be critical in shaping the next phase of development and financing for what could become a cornerstone asset in Australia’s copper sector.