Canyon Resources Limited, the Australian miner behind the Minim Martap project in Cameroon, has rolled out a funding package to support the launch of the large-scale bauxite development. The fund aims to raise AUD 215 million (USD 140 million), subject to shareholder approval, under the management of Cameroonian banking group Afriland and Canyon’s majority shareholder, Eagle Eye Asset Holdings (EEA).
The package comprises a two-tranche placement worth AUD 205 million (USD 134.5 million) and an additional AUD 10 million (USD 6.6 million) from EEA. Institutional investors will provide AUD 36 million (USD 23.62 million) in the first tranche, while EEA will commit AUD 100 million (USD 65.6 million) in the second, raising its stake in Canyon to 56.5%.
These funds will be combined with Canyon’s existing cash reserves and directed towards the construction of the Minim Martap mine and increase the company’s stake in Camrail from the current 9.1 per cent, in order to have greater control over the transport and logistics network.
The reported investment planning shows about AUD 206 million (USD 135 million) will be allocated to mine development, AUD 46 million (USD 30 million) will be invested in Camrai, and AUD 14 million (USD 9.19 million) will be used for general administration and corporate costs.
Responses
