Canyon Resources banks $5.6 million for further progress of Minim Martap bauxite project

The developer of the world-class Minim Martap bauxite project in Cameroon, Canyon resources is cashed out to headway its optimistic Minim Martap bauxite project following the completion of the first phase of $6.2 million placement.

The Australian company has raised more than $ 5.6 million from the issue of 70.48 million new shares priced at 8c each to new and also existing institutional and sophisticated investors while the issue of the remaining 6.77 million shares to non-executive director Peter Su is subject to shareholder approval.

Canyon Resources will also use the proceeds to advance strategic projects and off-take discussions, apart from funding the feasibility study.

The Central Cameroon located Minim Martap project has a resource of 1 billion tonnes grading 45.3% aluminium oxide and 2.7% silica dioxide that comprises an ore reserve of 99Mt at 51.6% aluminium oxide and 2.4% silica dioxide.

Presently, it is anticipated as a two-stage, two-port project with initial production exported through the port of Douala using existing rail and port infrastructure. The second stage unfolds more tonnes and lessens costs by utilising the planned rail extension to access the deep-water port of Kribi.

However, the first stage pre-feasibility study has already demarcated a 5 million tonne per annum direct shipping ore project with low development capital requirements of just US$120 million.

The average cash operating costs are predicted at US$35.1 per tonne while net present value and internal rate of return both measures of a project’s profitability are estimated at US$ 291million and 37% respectively.

The Minim Martap bauxite project will also restrict its environmental footprint, as the resource is expected to require less caustic soda consumption and which will pull down the disposal costs of red mud.