Cavalier Resources Limited (ASX: CVR) has announced that it has signed a non-binding term sheet for a US$11M (A$17.5M) stream finance facility with Raptor.
These funds would fully finance the development of the Crawford Gold Stage 1 open pit and in addition fund near-mine extensional infill drilling in order to upgrade further portions of the current resource to ore reserves and potential future open pit stages.
The facility amount is in excess of the A$13.2M peak capital drawdown requirement outlined in the PFS, providing a significant working capital contingency balance for the company.
Daniel Tuffin, executive technical director & CEO, commented, “The signing of this non-binding US$11M term sheet with an international gold streaming fund in Raptor marks yet another significant milestone as we enter into the next exciting phase for the company and our loyal shareholder base.
The non-binding term sheet contemplates delivery of up to 11,000oz of gold from the Crawford Gold Project, to be delivered on the basis of one ounce of gold for every 3.25oz produced on a delivery schedule to be agreed. Any ounces remaining to be delivered at the conclusion of Stage 1 can either be delivered early at Cavalier’s discretion from its allocation or carried forward to be delivered from potential future open pit stages.
Should the parties proceed to a binding agreement, Raptor will receive a transaction fee of 1.5% of the facility amount to be retained on drawdown.
To find out more, please visit www.cavalierresources.com.au
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