Canyon announces $140m funding for Minim Martap project in Cameroon 

Australian bauxite miner Canyon Resources has secured a significant A$215 million ($140 million) funding package to accelerate the development of its Minim Martap bauxite project in Cameroon. The comprehensive financing arrangement positions the company to commence operations in early 2026, marking a major milestone for Cameroon’s mining sector.

The funding package consists of a two-tranche placement totaling A$205 million, complemented by an options exercise from major shareholder Eagle Eye Asset Holdings (EEA) that will generate up to an additional A$10 million. The first tranche aims to raise A$36 million from institutional, sophisticated, and professional investors, utilizing Canyon’s existing placement capacity.

In the second tranche, EEA has committed to subscribe for A$100 million at the offer price, pending shareholder approval. Additionally, Afriland Bourse & Investissement, a subsidiary of Afriland First Bank—Cameroon’s largest financial services group—has pledged to invest up to A$70 million, subject to various regulatory approvals.

The financing structure will reshape Canyon’s ownership composition, with EEA maintaining a controlling 56.5% stake following the completion of the second tranche, while Afriland will emerge as a significant stakeholder with a 10.1% interest. The new shares are priced at A$0.26, representing a 5.5% discount to the last closing price and a 9.6% discount to the five-day volume-weighted average price.

The proceeds will primarily support the Minim Martap project development, with A$206 million allocated directly to project advancement. An additional A$46 million will increase Canyon’s investment in Camrail, strengthening the company’s control over the critical transport and logistics network essential to the project’s success. The remaining A$14 million will cover general administration and corporate costs.

Canyon CEO Peter Secker emphasized the significance of this investment: “This investment 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, Eagle Eye Asset Holdings.”

Secker added that the funding would enable the company to accelerate development while increasing strategic investment in Camrail, providing greater control over the transport infrastructure that underpins the project’s viability. He also highlighted the potential for future operational expansion in line with rail capacity improvements.

The Minim Martap project is strategically located in the Adamawa region of Cameroon, adjacent to the rail line connecting the area to the Atlantic port of Douala. This positioning offers significant logistical advantages for bauxite export operations. The project is expected to produce high-grade bauxite with low reactive silica content, making it suitable for various alumina refinery technologies, including both low and high-temperature processes—a characteristic that enhances its market value and versatility.

Camalco Cameroon, Canyon’s local subsidiary, maintains 100% ownership of the project. This latest funding builds on earlier financial progress, as Camalco secured a syndicated credit facility of $140 million from AFG Bank Cameroon earlier in 2025.

The joint lead managers for the placement were Canaccord Genuity (Australia) and Sternship Advisers, with Thomson Geer providing legal counsel throughout the process.

This significant capital injection represents not only a vote of confidence in Canyon Resources but also underscores the strategic importance of the Minim Martap project to Cameroon’s economic development. With operations set to commence and maiden bauxite shipments expected in the first half of 2026, the project stands to become a cornerstone of the country’s growing mining sector and an important contributor to the global bauxite supply chain.