Canyon Resources Limited (ASX: CAY) has entered into a Subscription Agreement with Eagle Eye Asset Holdings Pte. Ltd. (EEA), whereby EEA has agreed to subscribe for A$12,174,000 of fully paid Canton ordinary shares.
“We are pleased to make this strategic investment into Canyon. We are confident about the future development prospects of the Minim-Martap Project and view Cameroon as the new source of high-grade bauxite supply that will feed the world’s growing demand,” EEA’s President and CEO for Mining Investments, Pramod Prusty, said.
“Our vision with this investment is to participate in the bauxite and aluminium value chain from Africa and importantly, we have a successful track record of investing and developing projects in Africa and are looking to repeat this success with Canyon and the Minim- Martap Project.”
Canyon CEO Jean-Sebastien Boutet, said the company welcomes EEA as a long-term, strategic investor.
“EEA’s track record in Africa makes them a highly attractive partner for Canyon as we finalise our permits and approvals required for development,” Mr Boutet said.
“To be able to attract and secure support from EEA is a strong vote of confidence in the Project and the long-term vision for Minim-Martap and we look forward to progressing the Project through the development cycle and creating value for all stakeholders.”
Funds raised from the Strategic Placement will be used for the development of the Project.
Ashanti Capital acted as corporate adviser and Gilbert + Tobin acted as legal adviser to Canyon.
Minim Martap
Canyon Resources is developing its flagship Minim Martap one billion tonnes of high-grade, low contaminant bauxite, with significant exploration upside. Minim Martap is a world-class Project supported by a Bankable Feasibility Study. Results from the Study confirmed Minim Martap as a robust long-term project, producing some of the highest-grade bauxite globally for an initial 20 years of mining.
The 20-year mining schedule represents only 10.6% of the current Minim Martap Resource and technical studies have identified opportunities for a significant future increase in production tonnages. Cameroon has enjoyed successful development and construction of industry and infrastructure, particularly agriculture, roads, railways and ports, including a hydro-electric powered aluminium smelter at Edea, utilising imported alumina. Importantly, Cameroon provides a solid foundation to support a significant mining industry, from fundamental infrastructure and mineral deposits, to a highly skilled population with experience in technical vocations, exploration, construction and mining.
For further information please visit: https://canyonresources.com.au/
