Gilbert + Tobin has advised Caravel Minerals Limited (Caravel) on a $15 million royalty funding arrangement with Regal Resources Royalties Fund to support the continued development of the Caravel Copper Project in Western Australia.
Caravel is an ASX-listed copper developer progressing the Caravel Copper Project, located approximately 150 kilometres north of Perth. The Project is one of Australia’s largest undeveloped copper projects and is expected to play a role in future copper supply as demand for critical minerals continues to grow.
Under the latest royalty funding arrangement, Caravel will receive an additional $15 million from Regal in exchange for a 0.75% net smelter return royalty over the Caravel Copper Project. The royalty funding is expected to be used for the Project feasibility study and general corporate purposes.
The transaction also extends the maturity date for Caravel’s existing $15 million loan facility with Regal to 31 March 2028, with the remaining terms of that facility unchanged. Regal’s total investment in the Project has now increased to $30 million.
The G+T team was led by Claire Rowe, Special Counsel in the Banking and Finance team.
Claire Rowe commented:
We are pleased to have supported Caravel on this funding arrangement, which provides additional capital for the continued progression of the Caravel Copper Project. The transaction is an example of the role of royalty and other alternative funding structures in funding the development of critical minerals and resources projects.
