Caravel Secures $15M Loan as DFS Nears Completion in H1 2026

A Year of Transition and Progress

Caravel Minerals Limited has provided a comprehensive update on its flagship Caravel Copper Project during its 2025 Annual General Meeting, highlighting a year marked by significant technical and strategic milestones. Despite the challenges typical of junior miners, including limited equity availability and the need for cash conservation, the company has advanced its project with a clear focus on completing the Definitive Feasibility Study (DFS) by the first half of 2026.

Over the past year, Caravel has finalized key metallurgical workstreams, secured a $15 million loan facility to fund the DFS, and received a grid connection offer from Western Power. Additionally, the company has made substantial progress on water licensing and land agreements, with two-thirds of necessary land deals completed. These developments position Caravel well to meet its technical and regulatory milestones.

Market Dynamics Supporting Project Viability

The copper market backdrop has shifted favorably since last year, with prices rising from around US$4.00 to nearly US$5.00 per pound. This increase, coupled with ongoing mine disruptions and a growing deficit in concentrate supply, underscores the critical need for new copper sources. Caravel’s project benefits from this tightening market, which is driven by accelerating demand linked to the global energy transition, particularly the expansion of electric vehicles, renewable energy infrastructure, and grid storage solutions.

Furthermore, economic growth in key regions such as India and China is expected to sustain copper demand well into the future. BHP’s recent commodity outlook highlights a looming 10 million tonne supply gap by 2035, emphasizing the urgency for upstream mine investments like Caravel’s.

Technical and Regulatory Milestones

Caravel’s DFS is supported by robust technical foundations, including simplified process designs yielding high-grade copper, molybdenum, and precious metals. The company has appointed leading contractors such as Primero, KCB, and DBMVircon to drive project delivery. Water resources have been identified with licensing underway, and a low-impact tailings management approach has been selected to align with sustainability goals.

On the regulatory front, Caravel has submitted its Environmental Review Document ahead of the Public Environmental Review and is actively pursuing lead agency project status with the Western Australian government. These approvals remain critical path items for the project’s progression toward a final investment decision.

Sustainability and Strategic Partnerships

In a sector increasingly focused on environmental and social governance, Caravel has published its inaugural sustainability report, which supports its strategy to secure Export Credit Agency financing. The company is also engaging with potential strategic and offtake partners to underpin project financing and market access, aiming to finalize binding term sheets in 2026.

Community engagement continues with initiatives such as a seed collection program in collaboration with Wheatbelt NRM and the Yued Aboriginal Corporation, reflecting Caravel’s commitment to responsible development.

Looking Ahead

With the DFS well underway and a supportive copper market environment, Caravel Minerals is poised to navigate the final stages of project development. The coming months will be critical as the company seeks to complete permitting, secure lead agency status, and formalize strategic partnerships that will enable a final investment decision.