Cavalier Resources Raises $4M to Advance Crawford Gold Pre-Production

Placement Accelerates Crawford Gold Project Development

Cavalier Resources Limited (ASX:CVR) has secured firm commitments for a $4 million placement priced at $0.30 per share, representing an 11.95% discount to the 15-day volume weighted average price (VWAP). The placement, conducted under ASX Listing Rules 7.1 and 7.1A, will issue over 13 million new shares without any free-attaching or broker options, signalling a straightforward capital raise aimed squarely at advancing pre-production milestones at the Crawford Gold Project.

The funds will be directed toward procuring long-lead mining plant and equipment, site establishment including clearing and bore field development, haul road construction, and recruiting key personnel to support the transition into production. CEO Daniel Tuffin emphasised that this capital injection is a "significant step" toward moving the Stage 1 pit into production, with early works like site clean-up and infrastructure development poised to commence imminently.

Complementary Funding Negotiations Progress

Alongside the placement, Cavalier is advancing negotiations for a US$13 million secured prepayment facility with Raptor Capital International and a separate A$5 million gold loan facility with Ottomin Pty Ltd. Both remain indicative and non-binding, subject to due diligence and approvals, but if concluded, these arrangements would substantially bolster the project's financial flexibility. This funding package builds on the company’s broader strategy to underpin Stage 1 development and capital expenditure, as detailed in a recent US$18 million gold prepayment announcement.

Updated Pre-Feasibility Study Confirms Robust Economics

The placement follows Cavalier’s updated Pre-Feasibility Study (PFS) released in March 2026, which incorporated higher gold prices and revised capital and operating costs while maintaining the original Stage 1 pit design and Ore Reserve estimates. At a base gold price of A$6,500 per ounce, the project’s net present value (NPV8) stands at A$77.2 million with an internal rate of return (IRR) of 385% and a payback period of just over nine months. These figures reflect resilience amid rising capital costs, with total capital expenditure now estimated at A$20.2 million, including site clearing, haul road construction, and processing infrastructure.

Processing costs have decreased slightly to A$10.81 per tonne of ore, and the Ore Reserve remains steady at approximately 1 million tonnes grading 0.91 grams per tonne, expected to produce around 29,300 ounces of gold. However, caution is warranted as the production target includes a small proportion of Inferred Resources, which carry a low geological confidence level and may affect actual outcomes.

Shareholder Confidence and Next Steps

Notably, the placement attracted strong participation from existing shareholders, reflecting confidence in the project's trajectory and the management’s strategy. Sanlam Private Wealth acted as lead manager, earning a 6% fee on the funds raised. The successful raise provides Cavalier with the runway to commence critical early-stage activities, including bore field development and haul road construction, while recruiting operational staff essential for pre-production execution.

Investors should watch closely how the company finalises its funding arrangements and progresses site works against the updated PFS assumptions. The interplay between this placement and the larger, yet non-binding, prepayment and loan facilities will be pivotal in shaping the project’s financing structure and timeline toward production.