Canyon Resources raises $5 million to develop Minim Martap Bauxite Project in Cameroon

According to a report from Proactiveinvestors Australia, Canyon Resources Ltd has raised $5 million from institutional and sophisticated investors. They raised the fund through a heavily oversubscribed share placement comprising of more than 32.2 million shares at a price of 15.5 cents each.

The placement price represents an 8.3% discount to the 30-day Volume Weighted Average Price (VWAP) and a 16.9% discount to the 15-day VWAP.

The money will be used to develop Canyon’s Minim Martap Bauxite Project in Cameroon. Canyon managing director Phillip Gallagher welcomed the new investors in the company.

Commenting on the fund raising, Canyon managing director Phillip Gallagher said, “The investors have the capacity to support the company as we advance the Minim Martap Bauxite Project in Cameroon. “We are now in a strong financial position as we start the exciting process of developing such a large-scale bauxite asset,” he added.

Canyon has appointed BW Equities Pty Ltd as the company’s corporate advisors, which will assist Canyon with capital requirements, strategy and market communications.

Canyon confirms that the fund will be used in reviewing existing data and conduct project studies, as well as undertaking confirmatory and exploration drilling. The company aims to define an initial JORC-compliant resource after reviewing the deposit’s geology in detail.

Minim Martap is a large-scale project side by side the existing Birsok Project of Canyon. Both are considered to be highly prospective for direct shipping of high-grade bauxite. The Birsok Bauxite Project and the world class Minim Martap bauxite deposit are located in an emerging bauxite region of Cameroon, and approximately 10 kilometres from an operating rail line and then a journey from Ngaoundal to Douala Port.