Caravel Minerals has reached 90% completion of its Definitive Engineering Study for the Caravel Copper Project, secured a critical grid connection offer, and signed a strategic MoU with Adani’s Kutch Copper for offtake and potential investment.
- 90% completion of Definitive Engineering Study with reduced water use
- Secured draft grid connection offer for 89MW winter capacity
- MoU signed with Kutch Copper (Adani) for offtake and investment
- Environmental approvals progressing with key studies completed
- $2.19M exploration expenditure and $15M loan facility drawn
Engineering Progress and Resource Planning
Caravel Minerals Limited (ASX: CVV) has made significant strides in advancing its Caravel Copper Project during the December 2025 quarter. The Definitive Engineering Study (DES) is now 90% complete, marking a critical phase in refining the project’s design and operational parameters. Notably, the company has successfully reduced its projected annual water consumption from 18 to 12 gigalitres, a move that aligns with sustainable resource management and regulatory expectations.
Key technical milestones include confirmation of the electrical load requirements, which underpin the recently secured draft Access Offer from Western Power. This offer guarantees grid connection capacity of 89MW in winter and 72MW in summer, ensuring reliable, low-emissions power supply for the mine’s operations. The integrated site layout has been finalised, locking in infrastructure locations that optimise efficiency and environmental footprint.
Environmental and Regulatory Advances
On the regulatory front, Caravel has completed or initiated several critical environmental studies in response to feedback from the Environmental Protection Authority. These include flora surveys, invertebrate assessments, and acid sulfate soil investigations, all feeding into the Environmental Review Document (ERD) scheduled for resubmission in 2026. Draft Environmental Management Plans have been prepared, outlining strategies to monitor and mitigate environmental impacts throughout the project lifecycle.
Complementing these efforts, the company continues its voluntary seed collection program in collaboration with Indigenous ranger groups, fostering biodiversity offsets and community engagement. Water licensing efforts are advancing with expanded hydrogeological modelling and monitoring bore drilling, supporting compliance with Western Australia’s water regulations.
Strategic Partnerships and Financing
Perhaps the most market-significant development is the signing of a non-binding Memorandum of Understanding with Kutch Copper Ltd, a subsidiary of Adani Enterprises Ltd. This agreement sets the stage for exclusive negotiations on a life-of-mine offtake agreement potentially covering up to 100% of Caravel’s copper concentrate production, estimated at 62,000 to 71,000 tonnes annually in the early years. The MoU also contemplates potential direct investment by Kutch Copper, which could provide a substantial capital injection and accelerate project timelines.
Alongside this, Caravel is progressing discussions with precious metals stream financiers to secure upfront deposits that would support capital requirements with minimal shareholder dilution. The company drew down a $15 million loan facility from Regal Royalties during the quarter, bolstering its financial position as it advances towards construction.
Land and Infrastructure Readiness
Caravel executed the final land purchase option for the Bindi site, enabling imminent grant of mining and general-purpose leases essential for project development. This secures tenure over key resource areas, processing facilities, and waste management zones. Geotechnical drilling at the Dasher deposit has informed pit wall stability assessments, supporting the forthcoming updated Ore Reserve statement targeted for release in 2026.
While no mining production occurred during the quarter, these cumulative advances position Caravel Minerals well for the next phase of project execution, balancing technical rigour, environmental stewardship, and strategic partnerships.
Bottom Line?
With engineering, environmental, and strategic milestones converging, Caravel Minerals is poised to transition from development to production, but key approvals and financing remain pivotal.
Questions in the middle?
- Will the final Ore Reserve update meet market expectations and support project financing?
- How will the partnership with Adani influence project timelines and capital structure?
- What are the risks and timelines associated with the Environmental Review Document resubmission?