Placement and options funding, backed by Eagle Eye Asset Holdings and Afriland, targets an early-2026 start and greater control of rail logistics at Cameroon’s Minim Martap Bauxite Project
Funding Package and Pricing
ASX-listed Canyon Resources (site) announced a strategic funding package of about A$215 million to accelerate development of the Minim Martap bauxite project in Cameroon. The package comprises a two-tranche placement to raise about A$205 million and an options exercise to raise about A$10 million. Shares will be issued at A$0.26, representing a 5.5% discount to the last closing price and a 9.6% discount to the five-day VWAP.
Major Investor Commitments
Canyon’s major shareholder, Eagle Eye Asset Holdings (EEA), will contribute about A$110 million via the exercise of 137 million options at A$0.07 and a commitment to subscribe for A$100 million under Tranche 2, subject to shareholder approval. Afriland Bourse & Investissement, a subsidiary of Afriland First Bank, has committed to subscribe for up to A$70 million under Tranche 2, subject to shareholder approval and regulatory clearances in Cameroon.
Project Status and Economics
Proceeds will be directed to expediting Minim Martap, which is on track to start operations in early 2026. Minim Martap is described as one of the world’s highest-grade bauxite deposits, with a resource of more than one billion tonnes, including reserves of 144 million tonnes at 51% alumina and 2% silica. An updated definitive feasibility study confirmed a net present value exceeding $830 million and an internal rate of return of 29%.
Logistics and Camrail
Funds will also support Canyon’s increased investment in Camrail and related corporate costs. CEO Peter Secker said: “The investment in Canyon by the largest financial services group in Cameroon further demonstrates the confidence of the Cameroon government and major institutions in the company, and their strong support for the Minim Martap project, alongside the continued backing of our major shareholder, EEA.”
He added: “This funding will enable us to accelerate the development of Minim Martap and increase our strategic investment in Camrail, providing greater control and certainty over the transport and logistics network that underpins the project, while also positioning us to expand operations in line with future rail capacity.” Secker also noted that “the investment from Afriland highlights the importance of the Minim Martap project to Cameroon as we move towards our maiden bauxite shipment in the first half of 2026”.
Cameroon’s “First Ever Bauxite Mine”
The project is “positioned to become Cameroon’s first-ever bauxite mine,” with an initial output of 1.2 million tonnes in early 2026 and a phased ramp-up to 10 million tonnes by 2032. According to reports, Canyon intends to increase its stake in Camrail beyond a current 9.1% position and indicates the company is progressing negotiations to finalize sales agreements by the end of 2025.
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