Canyon Resources receives new investor and shareholder to advance the development of Minim Martap bauxite project

The world-class bauxite project developer Canyon Resources has received a nearly A$12.1 million strategic placement from Eagle Eye Asset Holdings to advance the development of its Minim Martap bauxite project in Cameroon.

Pramod Prusty, the President and CEO of Asset Holding, said on the Strategic Placement, “We are pleased to make this strategic investment into Canyon. We are confident about the future development prospects of the Minim-Martap Project and view Cameroon as the new source of high-grade bauxite supply that will feed the world’s growing demand. Our vision with this investment is to participate in the bauxite and aluminium value chain from Africa, and importantly, we have a successful track record of investing and developing projects in Africa and are looking to repeat this success with Canyon and the MinimMartap Project.”

Eagle Eye Asset will subscribe for more than 81.12 million Canyon shares at 6c each under the terms of the placement, representing a 41.8 per cent premium to Canyon's 30-day volume-weighted average share price and a 40.2 per cent premium to the company's 15-day volume-weighted average share price. Eagle Eye will become Canyon's largest shareholder after the placement, holding 19.9% of Canyon's shares. The deal won't need shareholder approval because it will be executed within Canyon's current placement capacity.

In accordance with the subscription agreement, Eagle Eye will additionally get one unlisted option for each placement share. These options have an August 2025 expiration date and an exercise price of 7 cents.

Jean-Sebastien Boutet, the CEO of Canyon Chief Executive Officer, said: "Canyon is very pleased to welcome EEA as a long-term, strategic investor. EEA's track record in Africa makes them a desirable partner for Canyon as we finalise our permits and approvals required for the development. Attracting and securing support from EEA is a decisive vote of confidence in the Project and the long-term vision for Minim-Martap."

"We look forward to progressing the project through the development cycle and creating value for all stakeholders."

A bankable feasibility study for the Minim Martap project confirmed an initial 20-year mine life. Based on an updated proven ore reserve of 108.91 million tonnes, grading 51.1 per cent total alumina and 2 per cent total silica, as well as a total mineral resource estimate of over 1 billion tonnes, at 45.3 per cent total alumina and 2.7 per cent total silica, the project is expected to produce 6.4 million tonnes of high-grade bauxite annually.

According to the analysis, Minim Martap would be able to supply some of the highest-grade bauxite in the world for a capital investment of about $253 million and a C1 operating cost of about $23.95/t of 51.1 per cent alumina export output.