Canyon Resources Limited has secured a substantial USD 24.5 million investment from its major shareholder, Eagle Eye Asset Holdings, following the exercise of 350 million options. This move will raise Eagle Eye’s ownership in Canyon to 54.7 per cent and strengthen the company’s cash position, enabling accelerated progress on the Minim Martap Bauxite Project.
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The Minim Martap project, located in central Cameroon, is a high-grade bauxite resource poised to become a key player in the aluminium supply chain. By focusing on direct shipping ore (DSO), the project aims to streamline the transition from raw bauxite to aluminium production, catering to the growing global demand for sustainable and efficient aluminium sources.
In its financial year ending June 30, 2024, Canyon Resources reported a total comprehensive loss of AUD 9.5 million (USD 6.27 million). Despite this, the company maintained a strong cash position, with cash and cash equivalents amounting to AUD 22.2 million (USD 14.65 million). The company's net assets stood at AUD 43.9 million (USD 28.97 million), reflecting its robust financial foundation to support ongoing and future operations.
Also read: Canyon Resources moves up the deck in the Minim Martap bauxite project
With the new funding, Canyon Resources is well-positioned to accelerate the development of the Minim Martap Bauxite Project, aiming to commence first shipments by 2026. This advancement is expected to contribute significantly to the aluminium industry by providing a reliable and high-quality source of bauxite, essential for aluminium production.
The company's strategic focus on developing the Minim Martap project underscores its commitment to enhancing the aluminium supply chain. By leveraging its resources and the recent investment, Canyon Resources aims to meet the increasing global demand for aluminium, driven by its applications in various industries, including automotive, construction, and packaging.
Also read: Canyon Resources expands infrastructure play with CAMRAIL investment
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