Strategic Investment Strengthens Logistics Pathway to Develop Minim Martap Toward Production
Canyon Resources Limited (ASX: CAY) (‘Canyon’ or the ‘Company’) is pleased to announce that the Board of CAMRAIL SA (‘Camrail’) has approved Total Energies Marketing Cameroun SA (‘Total Cameroon’) and Societe d’Exploitation des Bois du Cameroun (‘SEBC’) to enter into two share sale agreements with the Company’s wholly owned in-country subsidiary Camalco Cameroon SA (‘Camalco’). The agreements will see Camalco acquire a strategic 9.1% investment in Camrail as well as secure a position on the Camrail Board upon the completion of the two acquisitions.
Camalco acquired a 3.8% equity interest in Camrail from SEBC for an upfront cash consideration of XAF 575,700,000 (approximately A$1.4 million) and this unconditional acquisition was completed on the 28th of February 2025. Camalco will separately acquire a 5.3% equity interest in Camrail from Total Cameroon for an upfront cash consideration of XAF 812,850,000 (approximately A$2.0 million). Completion of this acquisition from Total Cameroon is subject to the remaining condition precedent of internal approval by the Apex Committee of Total Cameroon, which is expected to be completed by the end of March 2025. The total consideration of approximately A$3.4 million for the 9.1% holding in Camrail will be paid from the Company’s existing cash reserves.
Establishing and accessing a transport network within the region, notably within the mine and from mine-to-port is a key focus area for Canyon, and the execution of these agreements and investment in Camrail which operates Cameroon’s rail network (refer to Image 1), has further de-risked the Company’s position in securing and optimising the logistics solution for its world-class, flagship Minim Martap Bauxite Project (‘Minim Martap’ or ‘the Project’).
Minim Martap ranks among the world’s richest bauxite deposits, with an Ore Reserve of 109Mt at 51.1% Al2O3 and 2.0% SiO2 and a JORC Mineral Resource Estimate of 1,027Mt at 45.3% Al2O3.
Mr Jean-Sebastien Boutet, Canyon Chief Executive Officer commented: “This investment in Camrail is a major milestone for Canyon, as we continue to work on establishing an optimal logistics plan for the Minim Martap Project.
“Minim Martap is a standout, tier-one bauxite project, which Canyon believes has all the required characteristics to become a long-term, low-cost operation, supplying a high-quality product into a growing and constrained market. To unlock the significant value potential of Minim Martap, Canyon has been focused on progressing and completing key discussions with the Ministry of Mines, Ministry of Transport, the Port Authority of Douala, Camrail and other relevant authorities to sign agreements for rail and port and secure logistics support.
“We welcome the Board of Camrail’s approval of the 9.1% stake sale previously held by Total Energy and SEBC, to Camalco and look forward to working alongside the current shareholders in Camrail, State of Cameroon and Africa Global Logistics.
“This acquisition is a significant step forward in gaining access to rail infrastructure and delivering on our logistics objectives in the first half of 2025, and I would like to take the time to recognise the ongoing hard efforts of the Canyon team as we rapidly develop Minim Martap towards production.”
