SYDNEY: Canyon Resources Limited (ASX: CAY) has announced that its wholly owned subsidiary, Camalco Cameroon SA, will acquire a 9.1% interest in Camrail SA, the operator of Cameroon’s rail network.
This significant move, backed by two share sale agreements, marks a major milestone for Canyon’s flagship Minim Martap Bauxite Project.
Camalco will acquire a 3.8% equity interest from Société d’Exploitation des Bois du Cameroun (SEBC) for XAF 575,700,000 (approximately A$1.4 million). This transaction was completed on February 28, 2025.
Additionally, Camalco will purchase a 5.3% equity interest from Total Energies Marketing Cameroon SA for XAF 812,850,000 (approximately A$2.0 million), pending approval from Total Cameroon’s Apex Committee by the end of March 2025. The total consideration for the acquisitions amounts to A$3.4 million.
Canyon’s CEO, Mr. Jean-Sebastien Boutet, stated, “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 that has all the required characteristics to become a long-term, low-cost operation.”
The Minim Martap Bauxite Project boasts an Ore Reserve of 109 million tonnes (Mt) at 51.1% Al2O3 and a JORC Mineral Resource Estimate of 1,027Mt at 45.3% Al2O3, making it one of the world’s richest bauxite deposits.
With the acquisition, Canyon aims to de-risk its logistics solution, ensuring efficient transport from mine to port.