Canyon Resources announced a financing plan aimed at raising A$215 million (about US$141 million) to fund its Minim Martap project, which is poised to become Cameroon’s first bauxite mine. The capital raise is subject to shareholder approval.
The Australian company detailed a two-tranche share placement to raise approximately A$36 million and A$170 million, respectively. The transaction has secured significant backing from Cameroonian banking group Afriland and Canyon’s majority shareholder, Eagle Eye Asset Holdings. Eagle Eye has also committed to injecting approximately A$10 million through an options exercise.
Once secured, the funds will be combined with Canyon’s existing cash reserves and primarily directed toward the construction of the Minim Martap mine. A portion of the capital will also be used to increase the company’s stake in Camrail, the operator of Cameroon’s national railway network, in which it currently holds a 9.1% share.
Canyon stated that the increased investment in Camrail aims to provide greater control and security over the transport and logistics network that underpins the project. The railway has been selected as the primary logistics channel for transporting the future bauxite production from Minim Martap.
The mine is scheduled to begin operations in early 2026 with an initial annual production of 1.2 million tons, ramping up to 10 million tons of bauxite per year by 2032. Based on current resources, the mine is expected to have a 20-year operational life.
While working to secure the necessary financing, Canyon is also negotiating contracts to sell the bauxite output. The company noted in an earlier release this month that it plans to advance these sales negotiations by the end of 2025.
