Caravel Executes Farm-in Agreement with First Quantum Minerals

Caravel Minerals Ltd. (ASX:CVV) announced that it’s executed a farm-in agreement with First Quantum Minerals Ltd. (TSX:FM,LSE:FQM) that will allow it to continue advancing its flagship Calingiri copper-moly project. Calingiri is located in Western Australia, and First Quantum is a cornerstone investor in Caravel.

Further highlights include:

• FQM will have the right to acquire a 50.1% interest in the Calingiri Project, located 120km NE of Perth in Western Australia, after contributing A$3.6M
• These funds will be allocated to the next phase of Calingiri exploration work programs
• Caravel will provide FQM with a First Right of Offer to increase their equity in the Calingiri Project after obtaining a 50.1% interest
• FQM has agreed to convert the existing Convertible Loan Agreement in the amount of A$0.6M to shares in Caravel

Marcel Hilmer, chief executive at Caravel, commented:

This is a tremendous vote of confidence in the quality and potential of the Calingiri Project by one of the world’s most successful copper mine developers and producers of the past 15 years.

The proceeds from the FIA will be used to execute the next phase of exploration activities at Calingiri that will significantly advance the project. Our recent successful drilling programs have already established Calingiri as potentially one of the largest bulk tonnage deposits for copper and molybdenum in Australia, with an endowment potential well in excess of 1.4Mt of copper metal.

Our focus now is to increase our exploration targets, establish JORC compliant resource for the project and to advance Calingiri towards a Scoping Study. With this additional funding injection, we will be well placed to move towards achieving these objectives.

Caravel is looking forward to continuing its long and successful relationship with FQM.

Click here to read the full Caravel Minerals Ltd. (ASX:CVV) press release.