Canyon Resources advances steadily on its Minim Martap Bauxite Project with mining operations set to begin in February 2026 and a strong equity raise underpinning development.
- Mining operations scheduled to commence February 2026
- First bauxite shipment targeted for mid-2026
- Completion of Inland Rail Facility and haulage road on track for Q2 2026
- Tranche 1 equity raise of A$35.6 million completed; Tranche 2 pending approvals
- Strong cash position of A$86 million and ongoing credit facility drawdowns
Project Development Progress
Canyon Resources Limited (ASX, CAY) has reported significant progress in the December 2025 quarter on its flagship Minim Martap Bauxite Project in Cameroon. The company remains on track to commence mining operations in February 2026, a milestone that marks a critical transition from development to production. Construction of the ore haulage access road and the Inland Rail Facility (IRF) continues apace, with all clearing completed and engineering designs finalized. Key infrastructure components such as switchgear, tracks, and sleepers have been ordered, with delivery expected in the first quarter of 2026.
The arrival of the first surface miner in Cameroon in December 2025 signals the imminent start of mining activities. Locomotives and wagons, essential for transporting ore from the mine to the port, are nearing completion in China and are scheduled for delivery in the second quarter of 2026. The IRF itself is on track for completion by mid-2026, aligning with the planned commencement of ore haulage to the port stockpile.
Financing and Capital Structure
Financially, Canyon Resources has bolstered its position through a two-tranche equity raise totaling approximately A$205 million. The first tranche, raising A$35.6 million, was completed during the quarter, while the second tranche, comprising placements to Eagle Eye Asset Holdings (EEA) and Afriland Bourse & Investissement, awaits regulatory and shareholder approvals. Notably, Afriland’s participation has been approved by shareholders, with only in-country regulatory consents pending. The A$100 million placement to EEA requires shareholder approval, expected to be sought in March 2026.
In addition to equity funding, Canyon has drawn down approximately US$45 million from its US$140 million credit facility with AFG Bank Cameroon, maintaining a robust cash balance of A$86 million at quarter-end. This strong liquidity position provides a solid financial foundation as the company advances towards production.
Operational Outlook and Strategic Initiatives
The company’s rail access from the IRF to the Port of Douala is scheduled to be operational in the second quarter of 2026, initially targeting a transport capacity of 2 million tonnes per annum (Mtpa) in 2027, with plans to scale up to 10 Mtpa following the PQ2 rail upgrade. Discussions are underway to increase Canyon’s stake in Camrail from 9.1% to approximately 35%, a strategic move aimed at gaining greater influence over rail infrastructure upgrades and reducing logistical risks.
Looking ahead, Canyon aims to ship its maiden bauxite trial shipment by mid-2026, with full-scale shipping operations anticipated to commence in the fourth quarter of 2026. The company also plans to complete a feasibility study for an alumina refinery by the third quarter of 2026, potentially adding significant value to the project’s long-term outlook.
Risks and Forward-Looking Considerations
While the project development is progressing well, Canyon acknowledges inherent risks including political uncertainties in Cameroon, timing of equipment deliveries, and the need for ongoing funding approvals. The company’s forward-looking statements emphasize that production targets and financial forecasts are subject to change based on these variables. Investors should remain mindful of these factors as the project moves closer to operational status.
Bottom Line?
With mining set to start imminently and financing largely secured, Canyon Resources is entering a pivotal phase that will test its operational execution and funding strategies.
Questions in the middle?
- Will shareholder approval for the A$100 million placement to Eagle Eye Asset Holdings be secured as planned in March 2026?
- How will potential political or logistical challenges in Cameroon impact the project’s timeline and cost?
- What are the prospects and timeline for increasing rail capacity beyond 10 Mtpa and expanding the company’s stake in Camrail?