Canyon announces $140m funding for Minim Martap project in Cameroon

Core Viewpoint - Canyon Resources has secured a funding package of A$215 million ($140 million) to accelerate the development of its Minim Martap bauxite project in Cameroon, demonstrating strong institutional support and confidence in the project [1][4]. Funding Details - The funding consists of a two-tranche placement to raise A$205 million, along with an options exercise by major shareholder Eagle Eye Asset Holdings (EEA) to generate up to A$10 million [1]. - The first tranche aims to raise A$36 million from institutional, sophisticated, and professional investors [1]. - The second tranche includes a commitment from EEA to subscribe for A$100 million, pending shareholder approval, and Afriland Bourse & Investissement has pledged to invest up to A$70 million, subject to approvals [2]. Shareholding Structure - After the completion of the second tranche, EEA will hold a 56.5% shareholding in Canyon, while Afriland will have a 10.1% stake [2]. Share Offer Pricing - The 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 [3]. Project Development Plans - Canyon plans to allocate A$206 million for the development of the Minim Martap project, A$46 million for increased investment in Camrail, and A$14 million for general administration and corporate costs [3]. - Operations at the Minim Martap project are expected to commence in early 2026, with the first bauxite shipment anticipated in the first half of 2026 [4]. Project Significance - The Minim Martap project is expected to yield high-grade bauxite with low reactive silica, making it suitable for various alumina refinery technologies [5]. - The project is strategically located adjacent to the rail line connecting to the Atlantic port of Douala, enhancing its logistical advantages [4].