African Critical Mineral Race: Canyon Resources to Raise $24.5 Million for Bauxite Development in Cameroon

Canyon Resources will raise $24.5 million through the issuance of shares to Eagle Eye Asset Holdings (EEA).

This funding will be used for the initial development of the Minim Martap bauxite project in Cameroon.

The deposit is expected to produce 6.4 million metric tons of high-grade bauxite annually over the next 20 years.

Canyon Resources plans to make Cameroon a bauxite producer through its Minim Martap project. According to the company's 2022 feasibility study, the deposit is expected to produce 6.4 million metric tons of high-grade bauxite annually over the mine's 20-year life span.

On May 19, the company announced that it would raise $24.5 million by issuing shares to its major shareholder, EEA. The funds raised will mainly be used to finance the initial development of the Minim Martap project located in central Cameroon.

Canyon has received notice from EEA requesting the exercise of 350 million share options, which is part of a broader 500-million-share option agreement reached in 2023. The exercise of these options depends on two key milestones: the granting of the mining license and the finalization of port and rail agreements. Upon meeting these conditions, Canyon will issue 350 million shares to EEA, securing $24.5 million in capital before the end of May. It is anticipated that after the transaction, EEA's stake in Canyon will increase to 54.7%.

Executive Chairman Mark Horn of Canyon stated, "This investment will provide the necessary funds for the initial construction work of the project, optimize critical infrastructure, which is part of our 'mine-to-port' strategy, and advance the final feasibility study (DFS) to completion later this year."

Canyon aims to begin exporting bauxite from Minim Martap by 2026. Although the new funds will support early-stage construction, the project still needs to achieve more milestones, including the final investment decision (FID), expected by the end of 2025. This decision will confirm full project financing and initiate broader construction activities. Canyon has not disclosed the total project cost or its entire financing strategy.

Source: ecofinagency

Original Article: https://www.toutiao.com/article/1832597439383564/

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