Canyon Resources negotiates vital terms with Cameroon govt. for mining convention of Minim Martap bauxite project

The Australian securities exchange registered firm Canyon Resources Limited announced that, through its wholly-owned Cameroon subsidiary Camalco Cameroon SA, it has attended four formal sessions with the Government of Cameroon to negotiate terms of the Mining Convention for the Minim Martap Bauxite Project, located in the Adamoua Region of Cameroon.

The sessions were attended in person by senior representatives of the Cameroon Government, senior executives from Camalco and Canyon and Camalco’s advisors.

On 5^th November 2021, the negotiations commenced when Camalco presented the Project to an audience of approximately 80 representatives of the Ministry of Mines and other Government administrators. The meeting incorporated an illustrated presentation of the Project by Camalco management and an extended Q&A session by those in attendance.

Following the Project presentation, the second round of negotiations involved a senior team from the Ministry of Mines reviewing Camalco’s draft Mining Convention at a four-day retreat from 10^th -13^th November 2021.

However, the third round of negotiations was during the 24^th - 26th November 2021, where the vital terms of the Mining Convention were agreed during the negotiations, which involved Canyon/Camalco, the Ministry of Mines and representatives of Sonamines, the state-owned mining company.

The fourth and final session was hosted by the Minister of Mines on 6th December 2021. The Project was presented to the local communities nearby the Minim Martap Project and determined the priorities for Camalco’s social and community engagement as the Project progresses into production.

This accomplishes the formal negotiations for the Mining Convention between Camalco and the State. Camalco will pursue to work closely with the State of Cameroon to finalise the remaining matters relevant to the Mining Convention, aiming to conduct the formal signing in early 2022.

A Mining Convention is the agreement between Camalco and the State of Cameroon that sets out Camalco’s fiscal and legal rights and obligations for the Minim Martap Project’s development and ongoing operation. A Mining Convention is the penultimate step to be completed by Camalco before receiving the Mining License.

The completion of negotiations for the Mining Convention which importantly confirms the key financial parameters for the project will enable Camalco to enter binding agreements with financing and off-take partners and logistics providers.

Phillip Gallagher, Canyon’s Managing Director, commented: “We are very pleased with the positive outcome of the negotiations and are appreciative of the Ministry of Mines hosting the very productive discussions over the past few weeks. It is clear that all sides involved see the short and long term benefits of the Minim Martap Bauxite Project to the State of Cameroon and there is a positive intent to see the project developed.”

“Having completed this important step with the State of Cameroon, the Company can now enter into binding rail and port agreements as well as advance project financing and strategic partner discussions.”

Canyon anticipates formal execution of the Mining Convention in the first quarter of 2022, subject to the approval of the Minister of Mines and travel availability in 2022.