en.Wedoany.com Reported - Cavalier Resources (ASX: CVR) has signed binding term sheets to secure US$18 million (A$25.9 million) in project debt financing to advance its Crawford Gold Project into production.
The financing package consists of two components: a US$13 million gold prepayment facility from Javelin Global Commodities and a US$5 million gold loan facility from Ottomin Group, together providing approximately US$23 million in funding for the project.
Cavalier Resources Interim CEO Daniel Tuffin said signing these binding project financing term sheets represents one of the most significant milestones since the company's inception. He emphasized that since its establishment, the company has focused on systematically advancing the Crawford Project toward production while minimizing shareholder dilution throughout the process.
According to Cavalier, the financing structure links repayment to future project cash flow and gold production, thereby reducing reliance on equity financing while supporting project execution. The company stated that the funds will be used for site establishment, long-lead equipment procurement, project construction, and working capital.
Under the Javelin financing arrangement, Cavalier will deliver approximately 6,999 ounces of refined gold bars over 20 months. This portion of the financing bears no cash interest, with a front-end fee of 1.5%. The financing also includes a future offtake option for up to 50,000 ounces of gold upon completion.
The Ottomin financing requires the company to repay the principal in three equal cash installments of US$1.67 million each in months 10, 11, and 12, also bearing no cash interest. The lender's return is linked to the delivery of 1,166 ounces of gold and includes 1.75 million options with an exercise price of 150% of the 30-day volume-weighted average price.
Under the intercreditor agreement, both lenders will serve as equal-ranking senior secured creditors for the Crawford Project. These financings remain subject to final documentation, customary due diligence, and satisfaction of conditions precedent.
This financing follows the completion of the updated pre-feasibility study for the Crawford Project, the signing of native title and mining agreements, and the completion of all Phase 1 heritage surveys over the past 12 months.
Cavalier has entered a 45-day exclusivity period with Javelin to finalize documentation and has suspended discussions with previously announced non-binding term sheet partner Raptor Capital International and other financing alternatives.
