Cavalier Resources (ASX:CVR) executes binding project financing term sheets for Crawford Gold Project

Cavalier Resources has executed binding project financing term sheets with Javelin Global Commodities (SG) Pte. Ltd and Ottomin Pty Ltd, representing a significant milestone in establishing the funding platform required to advance the company's wholly owned Crawford Gold Project toward production.

The proposed project financing package comprises a US$13M Gold Prepayment Facility from Javelin together with an A$5M Gold Loan Facility from Ottomin, providing approximately A$23M of project debt funding.

The proposed facilities remain subject to completion of definitive legal documentation, customary technical, legal and financial due diligence, satisfaction of conditions precedent and any necessary regulatory approvals.

Highlights

The proposed project financing package comprises complementary funding facilities designed to support Crawford's transition toward production while preserving balance sheet flexibility.

Javelin and Ottomin will rank equally as senior secured lenders over the Crawford Gold Project and associated project assets under an intercreditor arrangement to be finalised as part of the definitive financing documentation.

Subject to execution of definitive documentation and satisfaction of customary conditions precedent, the proposed US$13M Gold Prepayment Facility includes delivery of approximately 6,999 ounces of refined gold bullion over a 20 month term, no cash interest other than customary default provisions, a 1.5% upfront fee, and a future offtake option over up to 50,000 ounces following completion of the Gold Prepayment Facility.

The Facility has a 20 month term from the date of drawdown of funds and will contain customary refund events for a facility of its nature, including in circumstances where the commencement of production from the mine is delayed.

Subject to execution of definitive documentation and satisfaction of customary conditions precedent, the proposed A$5M Gold Loan Facility provides for principal repayment in three equal cash instalments of A$1,666,666.67 in months 10, 11 and 12 following the date the Gold Loan Facility is drawn in full.

The facility carries no cash interest, with lender return linked to delivery of a fixed 1,166 ounces of gold, or Australian dollar equivalent at Ottomin's election, together with a 1.5% transaction fee, 1,750,000 options exercisable at a 50% premium to the 30-day VWAP, and equal-ranking senior security over the Crawford Gold Project.

The financing package follows a series of major milestones achieved by Cavalier over the past 12 months, including completion of the updated Pre-Feasibility Study, execution of the Native Title and Mining Agreement, completion of all Stage 1 heritage surveys, strengthening of the company's executive management team and Board, and continued advancement of project approvals ahead of planned site preparation activities.

Following execution of the binding finance term sheet with Javelin, the company has entered into a 45 calendar day exclusivity period to complete the definitive documentation.

During this period, discussions in relation to the previously announced non-binding term sheet with Raptor Capital International Ltd, and other funding options, have been paused.

Cavalier Daniel Tuffin, Executive Technical Director and Interim CEO, said:

“This financing structure has been deliberately designed to minimise shareholder dilution while providing the capital required to develop Crawford. By aligning repayments with future project cash flows and gold production, we've reduced our reliance on traditional equity funding while maintaining the flexibility to execute our development plan.”

The company is progressing completion of definitive financing documentation together with satisfaction of industry standard conditions precedent and any resulting due diligence requirements.

Further updates will be provided as these workstreams are completed and the facilities progress to financial close.