Canyon Resources has drawn down US$26 million from its US$140 million credit facility to accelerate infrastructure and rolling stock procurement at its Minim Martap bauxite project, targeting production start in early 2026.
- First drawdown of US$26 million from US$140 million credit facility
- Funds allocated to rolling stock purchase and infrastructure development
- Locomotives and wagons ordered with deliveries expected Q1 2026
- Updated Definitive Feasibility Study due in August 2025
- Production and first bauxite shipment targeted for early and first half of 2026
Financing Milestone Signals Project Momentum
Canyon Resources Limited (ASX, CAY) has marked a significant step forward in the development of its flagship Minim Martap Bauxite Project in Cameroon by completing the first drawdown of US$26 million from a US$140 million credit facility secured with AFG Bank Cameroon. This infusion of capital is earmarked primarily for the acquisition of rolling stock and advancing critical infrastructure works, underscoring the company’s transition from planning to execution.
Strategic Procurement and Infrastructure Progress
The company has placed orders for locomotives with CRRC Ziyang Co. Ltd and wagons with Texmaco Rail & Engineering Limited, with initial payments securing these key long-lead items. Deliveries are expected to commence in the first quarter of 2026, aligning with the scheduled first shipment of bauxite in the first half of the year. Alongside rolling stock, Canyon is progressing mine development, haul road construction, rail infrastructure, and port facilities, all vital components to support sustained production.
Upcoming Definitive Feasibility Study and Production Outlook
Looking ahead, Canyon anticipates releasing an updated Definitive Feasibility Study (DFS) in August 2025, which will provide refreshed insights into the project’s economics and operational plans. The company remains on track to commence production in early 2026, aiming to become a reliable supplier of high-quality bauxite to meet growing international demand.
Leadership Confidence and Market Positioning
CEO Peter Secker highlighted the drawdown as a pivotal moment, emphasizing the confidence it reflects in both the project and the team. He described the milestone as a tangible demonstration of Canyon’s commitment to delivering a world-class bauxite operation that will generate lasting value for Cameroon and shareholders alike. This progress positions Canyon Resources as a notable player in the bauxite sector, with a clear path toward revenue generation and market presence.
Bottom Line?
With funding secured and infrastructure underway, Canyon is poised to transform Minim Martap from concept to commercial reality in 2026.
Questions in the middle?
- How will the updated Definitive Feasibility Study impact project economics and timelines?
- What are the key operational risks that could affect the delivery of rolling stock and infrastructure?
- How will Canyon position itself amid global bauxite market dynamics as production ramps up?