Canyon Resources’ Cameroon bauxite project hits funding pause as first shipment timeline withdrawn

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Canyon Resources’ Minim Martap bauxite project in Cameroon has hit a fresh financing hurdle after AFG Bank Cameroon suspended further drawdowns under the project’s loan facility, prompting the company to withdraw its previously announced first-shipment timeline.

The development comes as Canyon also faces funding constraints linked to the takeover bid from A2MP Investments FZCO.

Canyon said its Cameroon-based subsidiary, Camalco Cameroon, received formal notice from AFG Bank that further disbursements under the loan facility would be suspended.

The lender wants to complete a review of the Minim Martap project development schedule, financial model and other financial inputs, as well as conduct a site visit, before releasing additional funds.

The funding pause is significant because the project has been progressing towards mining and export infrastructure, with Canyon previously targeting its first bauxite shipment in the fourth quarter of 2026.

The company has now withdrawn that schedule pending greater certainty over funding and “transhipping” arrangements.

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Takeover bid adds pressure to funding options

Canyon said the takeover bid by A2MP Investments FZCO has also constrained its access to funding.

According to the company, ASX Listing Rule restrictions on equity capital raisings during a takeover bid period limit its ability to raise additional equity while the bid is underway.

This leaves Canyon working on alternative funding routes. The company said, together with its advisers Jefferies, it is pursuing multiple funding initiatives, including offtake-linked and prepayment structures and strategic funding alternatives.

Canyon had approximately AUD 31 million in cash as of July 31, 2026, according to the latest project update. It has also initiated capital-management measures aimed at reducing near-term cash expenditure and preserving financial resources.

Minim Martap remains focused on mine-to-port development

Despite the financing setback, development work at Minim Martap has continued.

Canyon said the first 60 rail wagons, out of 160 ordered, are scheduled to arrive in Douala over the next eight weeks. Trials involving seven locomotives and 60 wagons are expected to begin in the fourth quarter of 2026.

The haulage road connecting the mine to the rail terminal is also nearing completion, with the remaining works expected in Q4 2026.

Canyon's logistics strategy is central to the Minim Martap development because the project relies on an integrated mine-to-port chain connecting the bauxite operation with rail infrastructure and the Port of Douala.

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High-grade Cameroon bauxite remains the core proposition

The financing review comes despite Canyon continuing to highlight the quality of Minim Martap’s bauxite.

An independent bauxite market review completed by CM Group in August 2026 supports a long-term base-case price range of USD 78-86 per dry metric tonne for Minim Martap’s premium product, containing 51 per cent total alumina and no more than 2 per cent total silica.

Canyon’s previously reported Ore Reserve for Minim Martap stands at 144 million tonnes at 51.2 per cent Al₂O₃ and 1.7 per cent SiO₂, while its Mineral Resource is 1.102 billion tonnes at 45.3 per cent Al₂O₃.

The company is targeting a production ramp-up to 2 million tonnes per year, although the timing of first shipment is now dependent on funding certainty and the resolution of transhipping arrangements.

What happens next?

The immediate focus for the project is definitely funding, lender approval, logistics and the takeover bid timetable, which have become key variables for the Minim Martap production schedule.

Canyon said its Independent Board Committee and financial adviser Jefferies are continuing to prepare the company's response to the A2MP takeover bid, while funding alternatives are being pursued. Until AFG Bank completes its review and further financing is secured, Canyon has withdrawn its Q4 2026 first-shipment target.

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