Caravel Faces Key Environmental and Financing Milestones Amid DFS Push
Caravel Minerals has secured a $15 million non-dilutive loan facility to fund the Definitive Feasibility Study for its Caravel Copper Project, alongside finalising a simplified process flowsheet and initiating key engineering tenders.
- Secured $15 million non-dilutive loan from Regal Resources Royalties Fund
- Finalised simplified process flowsheet for high-grade copper and molybdenum production
- Initiated tender process for Definitive Engineering Study (DES) starting Q3 2025
- Appointed Study Manager to oversee DFS delivery targeted for 2026
- Progressing environmental approvals, water licensing, and 125MW grid connection
Strategic Financing Boosts DFS Progress
Caravel Minerals has taken a significant step forward in advancing its Caravel Copper Project by securing a $15 million secured loan facility from Regal Funds Management’s Regal Resources Royalties Fund. This non-dilutive funding is earmarked to support the completion of the Definitive Feasibility Study (DFS), a critical phase that will underpin the project's development decision. The loan, drawn down at the end of July 2025, carries a 10% annual interest rate compounded quarterly, with repayment options including cash or conversion to a net smelter return royalty, providing flexibility for Caravel’s capital management.
Engineering and Process Design Milestones
Complementing the financing news, Caravel has finalised a simplified process flowsheet designed to produce high-grade copper and molybdenum concentrates, while also capturing gold and silver by-products. This streamlined design leverages proven industry-standard methods, validated by independent metallurgical and engineering experts, reducing technical risk and aligning the project with major global porphyry copper operations.
Following this milestone, Caravel has commenced a tendering process to appoint an Engineering Service Provider for the Definitive Engineering Study (DES), aiming to start in the third quarter of 2025. The company has also appointed a dedicated Study Manager to ensure the DFS is delivered successfully in 2026, signalling a disciplined approach to project execution.
Advancing Infrastructure and Regulatory Approvals
On the infrastructure front, technical studies for a 125MW grid connection with Western Power are progressing, with an access offer expected imminently. This connection is vital for powering the project sustainably, supplemented by interim behind-the-meter generation until the State Government’s Clean Energy Link North project is operational.
Caravel is also actively engaging with the Department of Water and Environmental Regulation to secure water licenses, focusing on sustainable saline water sources that could also remediate local land degradation issues. Environmental approvals are advancing through the rigorous Western Australian Environmental Protection Agency process, with Caravel addressing all feedback and preparing for public release of the Environmental Review Document.
Financial Position and Operational Outlook
Financially, Caravel reported $5 million in cash reserves and no debt at quarter-end, reflecting prudent cash management amid ongoing exploration and evaluation expenditures of approximately $717,000. The company continues to invest in environmental studies, metallurgical testing, and strategic mine planning, all essential to refining project economics and operational strategies.
While no substantive mining production occurred during the quarter, these developments collectively position Caravel Minerals to advance decisively toward a Final Investment Decision, with sustainability and ESG considerations increasingly integrated into the project’s framework.
Bottom Line?
With financing secured and engineering studies underway, Caravel Minerals is poised to translate its technical progress into tangible project development momentum.
Questions in the middle?
- How will the option to convert the loan into a royalty impact Caravel’s future cash flows and shareholder returns?
- What are the expected timelines and potential hurdles for securing final environmental and water licenses?
- Which engineering firms will be awarded the DES contracts, and how might their expertise influence project execution risk?