Cavalier Selects SSH for 12-Month Crawford Stage 1 Mining Contract
Cavalier Resources has chosen SSH Group as its preferred mining contractor for the initial oxide pit at the Crawford Gold Project, aiming to kickstart mining operations within the next year.
- SSH selected for Stage 1 oxide pit mining services
- Proposed contract covers approximately 12 months of operations
- Commercial terms pending binding agreements
- Site preparation and regulatory approvals advancing
- Project financing conditions period extended
Preferred Contractor Selection Advances Crawford Gold Project
Cavalier Resources Limited (ASX:CVR) has taken a significant step forward in its Crawford Gold Project development by selecting SSH Group Ltd (ASX:SSH) as its preferred mining services contractor for Stage 1. The contract focuses on the oxide pit, with mining operations expected to span roughly 12 months.
While the parties have signed a Letter of Intent, the final commercial terms remain subject to due diligence, pricing benchmarks, and funding confirmation before binding Heads of Agreement and Mining Services Agreement are executed. This arrangement covers the mining services required to extract ore for processing through the project's planned on-site heap leach circuit.
Site Preparation and Regulatory Progress
Site works are already underway, with Cavalier advancing the remaining site preparation, access routes, and regulatory approvals necessary for mining to commence. Key milestones nearing completion include the Mine Development and Closure Plan (MDCP), road intersection approvals, and carbon services planning. The company is also progressing arrangements with the Perth Mint for gold refinement.
Technical Director and Interim CEO Daniel Tuffin emphasised the importance of SSH’s selection, noting the contractor's experience and practical approach align well with the project's execution needs. "Our focus is firmly on execution; putting the people, equipment and contracts in place to commence mining," Tuffin said.
Financing Negotiations Extend Conditions Period
On the financing front, Cavalier continues to negotiate Stage 1 funding with Javelin Global Commodities. The parties have agreed to extend the conditions period by up to 30 days to finalise documentation and related matters. This extension allows Cavalier to solidify the financial foundation necessary to support the upcoming mining activities.
The progress on contractor selection and site readiness complements the company's earlier efforts to enhance the project’s value and secure capital, including a 50% increase in the project's net present value to A$77.2 million and a $23 million financing package secured earlier this year.
Bottom Line?
Cavalier’s move to lock in SSH as the mining contractor signals growing momentum, but finalising binding agreements and project financing remain critical hurdles before production can begin.
Questions in the middle?
- Will Cavalier secure definitive mining contracts with SSH within the extended timeframe?
- How will the extended financing conditions period affect the project’s overall timeline?
- What operational challenges might arise during the planned 12-month Stage 1 mining campaign?
