Australian Bauxite miner Canyon Resources has announced a funding package of A$215m ($140) to expedite the development of its Minim Martap bauxite project in Cameroon.
The funding comprises a two-tranche placement to raise A$205m, alongside an options exercise by Canyon’s major shareholder, Eagle Eye Asset Holdings (EEA), to generate up to A$10m.
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The first tranche will raise A$36m from institutional, sophisticated and professional investors, utilising the company’s existing placement capacity.
The second tranche includes a commitment from EEA to subscribe for A$100m at the offer price, pending shareholder approval.
Afriland Bourse & Investissement, a subsidiary of Afriland First Bank, has also pledged to invest up to A$70m, subject to several approvals.
Following the completion of the second tranche, EEA will retain a 56.5% shareholding in Canyon, while Afriland will hold a 10.1% stake.
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By GlobalDataThe offer price for the new shares is set at A$0.26, reflecting a 5.5% discount to the last closing price and a 9.6% discount to the five-day volume-weighted average price.
Canyon plans to use the funds raised primarily to support the development of the Minim Martap project, with operations commencing in early 2026.
The company will allocate A$206m for project development, A$46m for increased investment in Camrail and A$14m for general administration and corporate costs.
Canaccord Genuity (Australia) and Sternship Advisers served as joint lead managers for the placement, while Thomson Geer provided legal advice.
Canyon CEO Peter Secker stated: “This investment in Canyon by the largest financial services group in Cameroon further demonstrates the confidence of the Cameroon government and major institutions in the company, and their strong support for the Minim Martap project, alongside the continued backing of our major shareholder, Eagle Eye Asset Holdings.”
“This funding will enable us to accelerate the development of Minim Martap and increase our strategic investment in Camrail, providing greater control and certainty over the transport and logistics network that underpins the project, while also positioning us to expand operations in line with future rail capacity.”
“The investment from Afriland highlights the importance of the Minim Martap project to Cameroon as we move towards our maiden bauxite shipment in the first half of 2026.”
Minim Martap project lies in the commune of Martap in the Adamawa region of Cameroon, adjacent to the rail line that connects the area to the Atlantic port of Douala.
It is expected to yield high-grade bauxite with low reactive silica, making it suitable for various alumina refinery technologies, including both low and high-temperature processes.
Camalco Cameroon, the local subsidiary of Canyon, holds 100% ownership of the project.
In early 2025, Camalco Cameroon secured a syndicated credit facility of $140m from AFG Bank Cameroon for the Minim Martap bauxite project.
