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Highlights
- Cavalier signs a non-binding term sheet for US$11 million (A$17.5 million) stream financing with Raptor Capital.
- Funding will fully finance the Crawford Gold Project Stage 1 open pit and additional drilling.
- Both parties enter a 60-day due diligence period before finalizing a binding agreement.
Shares of Cavalier Resources Limited (ASX:CVR) skyrocketed 62.8% to 14 cents on February 20, 2025, following the company’s announcement of a US$11 million (A$17.5 million) stream financing deal with Raptor Capital International Limited. The agreement is expected to fully fund the development of the Crawford Gold Stage 1 open pit, as well as infill drilling to expand ore reserves for potential future open pit stages.
Strategic Funding Without Shareholder Dilution
The stream financing facility is a non-dilutive funding method, meaning Cavalier does not need to issue new shares to raise capital. Instead, the company will deliver up to 11,000 ounces of gold to Raptor, based on a 3.25:1 production-to-delivery ratio. If additional gold remains undelivered at the end of Stage 1, Cavalier has the flexibility to either deliver early or roll it forward for future mine expansions.
Additionally, the facility exceeds the A$13.2 million peak capital drawdown outlined in the company’s Pre-Feasibility Study (PFS), ensuring a strong working capital buffer for operational contingencies.
Due Diligence & Next Steps
The non-binding term sheet is subject to due diligence, regulatory approvals, and board approvals, including securing all relevant mining permits. Both parties will now undergo a 60-day Due Diligence (DD) review, during which they may negotiate a binding agreement if all conditions are met. Should the deal proceed, Raptor will receive a 1.5% transaction fee upon drawdown.
Market Reaction & Future Outlook
Investors responded enthusiastically to the financing news, driving Cavalier’s stock price up by 62.8%.
