Caravel Minerals has appointed Primero Group as its preferred EPCM firm and secured a $15 million loan to fund its Definitive Feasibility Study, marking significant progress toward a Final Investment Decision for the Caravel Copper Project.
- Primero Group appointed as preferred EPCM firm
- Received 90MW grid connection offer from Western Power
- Released inaugural Sustainability Report detailing ESG commitments
- Secured $15 million loan facility from Regal Resources Royalties Fund
- Definitive Feasibility Study on track for mid-2026 completion
Project Advancement and Engineering Appointment
Caravel Minerals has taken a decisive step forward in developing its Caravel Copper Project, located northeast of Perth in Western Australia. The company announced the appointment of Primero Group Ltd, a subsidiary of NRW Group, as the preferred Engineering, Procurement, and Construction Management (EPCM) firm. Primero brings valuable experience from similar large-scale mining projects, including Northern Star’s Fimiston operation, positioning Caravel to benefit from proven engineering and project execution expertise.
Critical Infrastructure and Regulatory Progress
Securing reliable power is vital for the project’s success, and Caravel received a preliminary 90MW grid connection offer from Western Power. This milestone follows detailed power network studies and transmission infrastructure design, underscoring the project's readiness to integrate with the Southwest Interconnected System (SWIS). Concurrently, the company has advanced environmental approvals, including completing key flora and fauna surveys and initiating further studies in response to regulatory feedback. The Environmental Review Document resubmission is targeted for 2026, reflecting a methodical approach to meeting stringent environmental standards.
Sustainability and Community Engagement
In September, Caravel released its inaugural Sustainability Report, outlining its Environmental, Social, and Governance (ESG) framework. The report highlights commitments to biodiversity protection, community partnerships, and sustainable development practices. Notably, the company has begun a seed collection program in collaboration with local Wheatbelt Natural Resource Management teams and Indigenous rangers, supporting biodiversity offsets and rehabilitation efforts. These initiatives demonstrate Caravel’s intent to balance resource development with environmental stewardship.
Financial Position and Management Strengthening
To fund ongoing studies and project advancement, Caravel drew down a $15 million secured loan from Regal Resources Royalties Fund. The loan carries a 10% annual interest rate, compounded quarterly, with flexible repayment options including conversion to a net smelter return royalty. This financial backing provides a clear runway toward the Definitive Feasibility Study (DFS), expected by mid-2026, which will inform the Final Investment Decision. Additionally, the appointment of Andrew O’Dowd as General Manager Technical and Mining signals a bolstering of the leadership team to oversee mine design and operational readiness.
Outlook and Next Steps
With engineering, regulatory, environmental, and financial foundations strengthening, Caravel Minerals is positioning itself for a pivotal phase in project development. The company’s methodical progress on approvals and infrastructure, combined with its sustainability commitments, reflects a balanced approach to advancing a large-scale copper project amid growing global demand for copper in renewable energy technologies.
Bottom Line?
Caravel’s strategic moves set the stage for a critical feasibility milestone, with sustainability and financing decisions shaping its path forward.
Questions in the middle?
- Will Caravel secure final environmental approvals on schedule to meet the mid-2026 DFS target?
- How will the company decide between loan repayment or converting debt into a royalty stream?
- What impact will the sustainability initiatives have on community relations and regulatory support?