Canyon Resources’ Minim Martap bauxite project faces fresh uncertainty over funding and first shipment

Canyon Resources’ plans to bring its Minim Martap bauxite project in Cameroon into production, have been thrown into fresh uncertainty after AFG Bank Cameroon suspended further drawdowns from the project’s syndicated financing facility.

The bank suspended access to the remaining funds on August 24, 2026, pending a review of the project’s development schedule, financial model and underlying economic assumptions. The move comes as Canyon acknowledges that it will not meet its Phase 1 development timetable and has removed its previous first-shipment target without setting a new date.

For a project that had been targeting its first bauxite shipment in the fourth quarter of 2026, the change is significant. Canyon has also moved to reduce non-essential spending while it works through the funding review.

Funding review puts development schedule under scrutiny

AFG Bank Cameroon has asked Canyon’s subsidiary Camalco Cameroon to provide updated financial information within 15 days. The company has also been given 30 days to facilitate a site visit as part of the lender’s review.

The review covers not only the timing of the development but also the financial model and economic assumptions supporting the project.

Canyon had previously said a fourth-quarter 2026 shipment remained on track. On June 26, it also expected trial mining to begin in the September quarter. Those targets have now fallen away, leaving the development schedule without a stated first-shipment date.

The company is cutting non-essential expenditure as it reassesses the next steps.

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Minim Martap remains a large but unfinished development

Minim Martap has a mineral resource of about 1.1 billion tonnes and an ore reserve of 144 million tonnes. The ore averages around 51 per cent alumina and about two per cent silica.

The project has made progress on the infrastructure needed to move bauxite to market. Canyon increased its holding in rail operator Camrail from 9.1 per cent to 26.9 per cent in May 2026.

Seven diesel locomotives were delivered to Camalco in late June, while the first 60 of 160 rail wagons were expected to arrive in Douala in mid-August. The remaining wagons were scheduled to follow later in 2026.

The planned logistics chain would move bauxite by rail to the Atlantic port of Douala for export.

Canyon signed its mining convention with the Cameroonian government in July 2024, followed by the granting of the mining licence later that year.

Cash remains a key pressure point

Canyon had AUD 31 million in cash at July 31, 2026. Around USD75 million had already been drawn from the CFA82 billion syndicated facility supporting the project.

The company has yet to generate revenue from commercial production, meaning the funding position is particularly important while the project remains under development.

The proposed second-stage expansion is estimated to require another USD160 million, although that funding has not been secured.

Canyon’s shares closed at AUSD 0.046 on September 28, giving the company a market capitalisation of roughly AUD101 million. The company has not paid or declared a dividend.

Takeover adds another layer to the funding debate

The funding review comes against the backdrop of a takeover bid from A2MP Investments, which was already Canyon’s majority shareholder.

A2MP launched a conditional off-market cash offer of AUD 0.05 per share on July 29. In making its case, the shareholder pointed to the absence of binding offtake agreements and potential cash shortfalls from 2028.

Canyon’s independent board committee recommended that shareholders reject the offer. BDO Corporate Finance put the company’s value in a range of AUD 0.14 to AUD 0.446 per share, with a preferred value of AUD 0.32.

The Takeovers Panel accepted undertakings related to the offer on September 14.

A2MP subsequently declared its offer best and final on September 11, with the offer scheduled to close on September 21. It also acknowledged that it had no reasonable prospect of reaching its 75 per cent minimum acceptance condition.

Its stake later stood at 57.68 per cent. The final outcome of the offer had not been confirmed at the time of the research.

What comes next for Minim Martap

The immediate focus is now on whether Canyon and AFG Bank can agree on a revised development plan and funding pathway.The project still has substantial infrastructure and resource backing, but the removal of the first-shipment target highlights the gap between physical progress and the remaining financing and execution requirements.

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