Canyon Resources, which is listed on the ASX, shared that at its Minim Martap bauxite project site in Cameroon, a surface miner has been brought. The firm is now planning to start with the mining operations before the end of March.

As of now, the firm is aiming to start the first bauxite production in the early second quarter. This announcement shall enable the firm to achieve a milestone by shifting from the development phase to full operations.

On March 9, a general meeting was held where the firm announced that its stakeholders had voted against the second tranche private placement of shares to Afriland Bourse & Investissement, which was set at AUD 70 million (USD 50 million) to Eagle Eye Asset Holdings (EEA).

Keeping aside the recent development, the firm has confirmed that the project's stage 1 has been fully funded via nearly USD 95 million, which remains undrawn from the company’s USD 140 million credit facility with AFG Bank Cameroon, along with its current unaudited cash position, which is currently recorded at about USD 43 million as of February 28.

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Additionally, the firm has also conveyed its updated financial cash flow, which shows that its current cash position, as well as the unused balance of the AFG Bank Cameroon debt facility, will be enough to cover the capital expenditure required till the first shipment. This has been detailed in the firm's definitive feasibility study from September 1, 2025. The firm also confirmed that there is no extra funding which can be required from Afriland or EEA.

According to the latest development timeline, the company has confirmed that it will be sending out its first ore shipment in the third quarter of this year.

Peter Secker, CEO, Canyon, stated, "The mobilisation of the surface miner represents an important step as Minim Martap moves rapidly towards production and with mining set to commence shortly and financing confirmed through to first shipment, the company remains on track to deliver its first bauxite shipment in the third quarter of this year. At the same time, we continue to advance logistics, offtake discussions and our downstream feasibility study to maximise the long-term value of this Tier 1, globally significant, high-grade bauxite project."

While the discussion is still about the mining preparation moving forward, the firm confirms that its logistics arrangements are also making headway. Moreover, the firm mentioned that talks with the locomotive manufacturer CRRC Ziyang Co are still in progress and the latest forecasts suggest that the first locomotives should be arriving at the Port of Douala in the second quarter of this year.

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As mentioned by the company, this timeline is designed to facilitate the beginning of ore transport from the Inland Rail Facility to the port, which is much earlier than the scheduled first shipment for the third quarter of this year.

The firm also pointed out that they are conducting conversations with Camrail, which is still in progress, about possibly increasing their equity stake in the company beyond the current 9.1 per cent ownership.

The suggested boost within the strategic investment enables a deeper involvement in the PQ2 upgrade, which would help reduce risks in the company’s mine-to-port logistics. Owing to this, the firm said that the funding related to this potential increase has already been factored into the company’s revised cash flow projections.

At the same time, discussions concerning the offtake of the several potential partners are moving along as planned. The company has indicated that it plans to finalise offtake agreements after the initial bauxite shipments are completed, which will give customers a chance to verify the high-grade qualities of the Minim Martap ore reserve.

The offtake discussions will be boasting around 51 per cent alumina and about 2 per cent silica.

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