Stavely Minerals has locked in a $500,000 unsecured director loan facility to fund its 2026 Scoping Study targeting copper, gold, and silver production. This non-dilutive funding move underscores confidence from within the board as the company advances key projects.
- Unsecured $500,000 director loan facility executed
- Funds to support 2026 Scoping Study for copper, gold, and silver
- Loan provided by entities linked to non-executive director Peter Ironside
- 7.5% interest rate with 12-month term and optional equity conversion
- Non-dilutive funding enhances financial flexibility for Stavely Minerals
Loan Facility Details and Strategic Purpose
Stavely Minerals Limited (ASX, SVY) has announced the execution of a $500,000 unsecured director loan facility, designed to provide the company with flexible, non-dilutive funding as it progresses its 2026 Scoping Study. The study focuses on evaluating copper, gold, and silver production potential from two promising deposits, Thursday’s Gossan and the high-grade Cayley Lode.
The loan facility is split into two tranches of up to $250,000 each, provided by entities associated with non-executive director Peter Ironside. With an interest rate of 7.5% per annum and a 12-month maturity, the facility offers Stavely the ability to draw funds as needed, supporting both the scoping study and general working capital requirements.
Board Confidence and Commercial Terms
Chair and Managing Director Chris Cairns highlighted the loan as a significant vote of confidence from within the company’s leadership. He emphasised that the arrangement was made on commercial, arm’s length terms, underscoring the professionalism and transparency of the transaction.
Importantly, the loan is unsecured and ranks pari passu with other unsecured creditors, meaning it does not dilute existing shareholders’ equity immediately. However, should Stavely undertake a placement to professional and sophisticated investors before the loan is repaid, the lenders have the option, subject to shareholder approval, to convert outstanding amounts into equity at the same terms as the placement.
Implications for Project Development and Market Position
The funding injection arrives at a critical juncture as Stavely advances its scoping study, which aims to underpin a project capable of producing approximately 20,000 tonnes per annum of copper-equivalent metals over a decade. This scale of production, if realised, would position Stavely as a notable player in the base metals sector, particularly given the strategic importance of copper and precious metals in global markets.
By securing non-dilutive funding, Stavely preserves shareholder value while maintaining the agility to respond to evolving project needs and market conditions. The loan facility also signals internal confidence in the project’s potential and the company’s operational strategy.
Looking Ahead
Investors will be watching closely for the outcomes of the 2026 Scoping Study, expected to provide greater clarity on the project’s economics and development timeline. Additionally, any future decisions regarding equity placements and potential conversion of the loan facility will be key to understanding Stavely’s capital structure and growth trajectory.
Bottom Line?
Stavely’s director-backed loan facility offers a vote of confidence and financial agility as it advances a potentially transformative copper-gold project.
Questions in the middle?
- What will the 2026 Scoping Study reveal about project viability and timelines?
- Will Stavely pursue an equity placement that triggers loan conversion?
- How will current metals prices impact the project’s economic outlook?