Cavalier’s Revised PFS Shows 580% IRR, US$11M Streaming Finance Signed

Streaming Finance Agreement Advances Project Funding

Cavalier Resources Limited (ASX: CVR) has taken a significant step toward advancing its Crawford Gold Project with the signing of a non-binding term sheet for a US$11 million (approximately A$17.5 million) streaming finance facility with Raptor International Limited. This agreement, while still subject to binding terms and due diligence, is designed to fully fund the Stage 1 open pit development and near-mine extensional drilling to upgrade resources to reserves.

The facility is structured to be non-dilutive to shareholders, meaning Cavalier can progress to production without issuing additional equity, thereby preserving shareholder value. Raptor’s recent site visit to the Crawford Project was described as positive and productive, leading to an extension of the non-binding agreement to June 1, 2025, as both parties work toward finalising binding documentation.

Robust Revised Pre-Feasibility Study Underpins Project Economics

During the quarter, Cavalier completed a revised Pre-Feasibility Study (PFS) that incorporates higher gold prices and updated mining and heap leach capital cost estimates. The study maintains the original physical design and reserve estimates but reflects a gold price of A$4,600 per ounce, resulting in a striking internal rate of return (IRR) of 580% and a net present value (NPV8) of A$51.7 million.

The PFS projects a pre-capex cashflow of A$66.7 million over the life of the Stage 1 project, with total gold production estimated at 23,467 ounces and a low all-in sustaining cost (AISC) of A$1,793 per ounce. These metrics position the Crawford Project as a potentially highly profitable operation, even amid fluctuating gold prices.

Regulatory Progress and Environmental Compliance

Cavalier has submitted all necessary compliance reports, works approvals, and applications required to commence mining activities at Crawford. This includes mining proposals, environmental management plans, and water rights applications. While an appeal has been lodged against the Native Vegetation Clearing Permit, the company considers the appeal to have little merit and expects it will not materially delay project progress.

Environmental baseline studies indicate no significant factors triggering higher-level environmental approvals, and ongoing stakeholder engagement, including with Traditional Owners, continues to support the project’s advancement.

Exploration and Tenement Holdings

Cavalier maintains 100% ownership of key tenements across its Leonora Gambier Gold Lass Project North, Crawford Gold Project, Hidden Jewel Gold Project, and Ella’s Rock Li-Au-Ni Project. During the quarter, the company spent $162,000 on exploration activities, focusing on advancing resource definition and project readiness.

Cash flow statements reveal net cash used in operating and investing activities, with a closing cash balance of A$975,000 at quarter end. The company’s financial position, combined with the proposed streaming finance facility, provides a solid foundation for advancing the Crawford Project into production.

Looking Ahead

With the streaming finance term sheet extended and the revised PFS highlighting strong project economics, Cavalier is well positioned to move toward binding agreements and project execution. The coming months will be critical as the company navigates final approvals, completes detailed design and procurement, and works to convert resources to reserves through drilling.