Cavalier’s Revised PFS Shows 580% IRR Backing $11M Raptor Stream Finance
Cavalier Resources has extended its non-binding $11 million US stream finance term sheet with Raptor International, aiming to fully fund the development of the Crawford Gold Project Stage 1 open pit and near-mine drilling. A revised Pre-Feasibility Study underscores strong project economics with a 580% IRR and a 9-month payback period.
- Signed non-binding US$11 million stream finance term sheet with Raptor International
- Funding fully finances Crawford Gold Project Stage 1 open pit development and infill drilling
- Term sheet extended to June 1, 2025, while progressing towards binding agreements
- Revised Pre-Feasibility Study confirms robust economics: 580% IRR, 9-month payback
- Funding is non-dilutive, preserving shareholder equity and maximising returns
Funding Update and Strategic Partnership
Cavalier Resources has taken a significant step forward in advancing its Crawford Gold Project with the signing of a non-binding term sheet for an US$11 million (~A$17.1 million) stream finance facility with Raptor International. This funding package is designed to fully finance the Stage 1 open pit development and near-mine extensional infill drilling, which aims to upgrade portions of the resource to ore reserves and explore potential future open pit stages.
The partnership with Raptor, a specialist financier of low-cost development stage gold projects, is notable for its non-dilutive nature. This means Cavalier can progress the project without issuing additional equity, thereby preserving shareholder value and maximising potential earnings per share. The term sheet's extension to June 1, 2025, reflects both parties' commitment to finalising binding agreements while allowing time for due diligence and detailed drafting.
Robust Project Economics Confirmed by Revised PFS
Supporting this financing milestone is a revised Pre-Feasibility Study (PFS) released in April 2025, which updates the original March 2024 study. The revised PFS incorporates higher gold prices and updated capital and operating cost estimates, while maintaining the physical design and ore reserve estimates for Stage 1.
Key financial metrics from the revised PFS are compelling: a net present value (NPV8) of A$51.7 million, an internal rate of return (IRR) of 580%, and a payback period of just 9 months. The study projects production of approximately 23,467 ounces of gold over an 18-month mine life, with all-in sustaining costs (AISC) positioned in the lowest cost quartile at A$1,574 per ounce.
Project and Resource Overview
The Crawford Gold Project, located near Leonora in Western Australia, is a mature asset with a defined ore reserve of 1.002 million tonnes at 0.91 g/t gold, equating to 29,300 ounces. The Stage 1 open pit targets oxidised ore within this reserve, with the potential for future expansions through additional open pit stages funded by the stream finance facility.
Cavalier’s technical team, including Executive Technical Director Daniel Tuffin and Non-Executive Director Anthony Keers, has been actively engaged with Raptor representatives on site, underscoring the hands-on approach to advancing the project. The company also benefits from the expertise of geologist Paddy Reidy, who has overseen resource assessments and exploration activities.
Risks and Forward-Looking Considerations
While the funding arrangement and project economics are promising, the company cautions that the stream finance agreement remains non-binding and contingent on approvals, due diligence, and final documentation. There is no guarantee the transaction will be completed, and forward-looking statements are subject to risks including geological uncertainties, market conditions, and regulatory approvals.
Nonetheless, the strategic alignment with Raptor and the robust PFS underpin a positive outlook for Cavalier’s near-term development ambitions. The non-dilutive funding structure is particularly attractive in a market environment where equity dilution can erode shareholder value.
Bottom Line?
Cavalier’s extended funding term sheet with Raptor sets the stage for a pivotal phase in Crawford’s development, with binding agreements and project execution now in focus.
Questions in the middle?
- Will Cavalier and Raptor finalize binding agreements by the June 1, 2025 deadline?
- How will gold price fluctuations impact the project's financial viability and funding terms?
- What are the prospects for expanding beyond Stage 1 open pit mining with this financing model?
