Canyon Resources has locked in a US$140 million syndicated credit facility alongside a AU$24.5 million option exercise by a major shareholder, positioning the company to fast-track operations at its Minim Martap Bauxite Project in Cameroon.
- US$140 million syndicated credit facility secured from AFG Bank Cameroon
- AU$24.5 million option exercise by Eagle Eye Asset Holdings to fund Stage One
- Funding allocated for rail, transport infrastructure, and port development
- Final Investment Decision and Definitive Feasibility Study underway
- First bauxite shipment targeted for first half of 2026
Strategic Financing Milestone
Canyon Resources Limited (ASX: CAY) has taken a significant step forward in advancing its flagship Minim Martap Bauxite Project in Cameroon by securing a medium-term syndicated credit facility valued at approximately US$140 million. This financing, arranged through AFG Bank Cameroon, a leading local financial institution, will underpin critical infrastructure development including locomotives, wagons, rail lines, and port facilities essential for the project's logistics and export capabilities.
Complementing this credit facility, Canyon’s major shareholder Eagle Eye Asset Holdings has signaled its commitment by planning to exercise 350 million options, injecting an additional AU$24.5 million to support the initial stage of operations. Together, these funding sources provide a robust financial foundation for Canyon to progress towards commercial production.
Project Progress and Development Outlook
Since receiving its mining license in September 2024, Canyon has rapidly advanced Minim Martap, securing key land for port and rail infrastructure and moving closer to a Final Investment Decision. The company is concurrently completing a Definitive Feasibility Study that outlines a two-stage development strategy aimed at expediting production. The goal is ambitious: to ship the first bauxite from Minim Martap in the first half of 2026, marking a critical milestone for both the company and the regional mining sector.
Executive Chairman Mark Hohnen highlighted the importance of the partnership with AFG Bank Cameroon, praising the bank’s expertise in structured financing and its status as one of the top financial institutions in the country. He emphasized that the combined financial backing places Canyon in a strong position to execute its development plans swiftly and efficiently.
Local Partnerships and Financial Structure
AFG Bank Cameroon, part of the Atlantic Group founded by Ivorian businessman KONE DOSSONGUI, brings local market knowledge and financial strength to the table. The bank’s involvement signals confidence in the project’s viability and the broader economic potential of the region. The credit facility carries a fixed interest rate of 8% per annum plus VAT, with an eight-year repayment term and a 24-month drawdown period, secured by a first-ranking mortgage over the mining concessions and associated project assets.
This structured financing arrangement includes customary covenants and guarantees, including a parent company guarantee from Canyon Resources and a guarantee from the Africa Minerals and Processing Platform. These measures underscore the seriousness with which the company and its partners are approaching risk management and project delivery.
Looking Ahead
With funding secured and key milestones achieved, Canyon Resources is poised to accelerate its development timeline. The coming months will be critical as the company finalizes its feasibility study and moves toward making a definitive investment decision. Success in these areas could not only unlock the value of Minim Martap but also position Canyon as a significant player in the global bauxite market.
Bottom Line?
Canyon’s secured funding and shareholder backing set the stage for a pivotal year as Minim Martap moves from planning to production.
Questions in the middle?
- What are the detailed terms and potential impacts of Eagle Eye’s option exercise on Canyon’s share structure?
- How will the company manage execution risks associated with infrastructure development in Cameroon?
- What are the implications of the financing terms on Canyon’s long-term financial flexibility?