ASX-listed Canyon Resources has secured an AUD215mn ($142mn)
funding package to accelerate development of the Minim Martap
bauxite project in Cameroon.
The financing includes a two-tranche placement totalling about
AUD205mn ($136mn) and a AUD10mn ($6.6mn) options exercise by Eagle
Eye Asset Holdings. The first tranche will raise about AUD36mn
($24mn), while the second tranche, subject to shareholder approval,
comprises AUD100mn ($66mn) from Eagle Eye Asset Holdings and up to
AUD70mn ($46mn) from Afriland, a subsidiary of Cameroon’s largest
financial services group. Following approval, Eagle Eye Asset
Holdings will retain a 56.5% interest, with Afriland holding about
10.1%.
Canyon said the proceeds will be allocated to project capital
expenditure of AUD206mn ($136mn), a larger stake in rail operator
Camrail worth AUD46mn ($30mn), and corporate costs of AUD14mn
($9mn). The company stated that the funding ensures the project
remains on track to commence operations in early 2026, with first
shipments expected in the first half of that year. It added that
the investment will strengthen logistics capacity along the
project’s rail corridor.
The Minim Martap project is one of the highest-grade bauxite
deposits globally, containing more than 1bn tonnes of resources and
144mn tonnes of reserves at 51% alumina and 2% silica. A definitive
feasibility study estimated a net present value above $830mn and an
internal rate of return of 29%. Canyon reported pro-forma liquidity
of AUD175mn ($115mn) in undrawn debt facilities and AUD266mn
($176mn) in cash.
Afriland’s participation marks a rare instance of local
institutional involvement in project financing, which the company
said could support regulatory approvals and market integration in
Cameroon. If shareholders approve the second tranche at the annual
general meeting in November, Canyon expects settlement and trading
of the conditional shares to take place later that month, following
the first tranche issuance in early October.
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