Panel Receives Application Challenging A2MP’s Canyon Offer

Takeovers Panel Receives Formal Challenge to A2MP Bid

The Takeovers Panel has been formally approached by Mr Jeremy Raper regarding the off-market takeover bid by A2MP Investments FZCO for Canyon Resources Limited (ASX:CAY). The application highlights concerns over the accuracy and completeness of disclosures made by A2MP in its bidder’s statement, alongside allegations of coercive tactics aimed at pressuring shareholders to accept the offer.

Canyon, which is advancing the Minim Martap bauxite project in Cameroon, has been grappling with significant financial strain. A2MP and its associates currently control a majority 55.56% stake in the company, while Mr Raper holds a minor 0.10% interest. The Panel has yet to appoint a sitting panel or decide on proceeding with the application.

Disputed Bidder Claims and Shareholder Concerns

A2MP’s bidder’s statement contends that since a definitive feasibility study was completed in September 2025, project fundamentals and market conditions have materially worsened, rendering Canyon’s capital structure insufficient to fund development. The statement also claims the Minim Martap project’s cash flows cannot service the existing AFG Facility; a US$140 million credit line guaranteed by both Canyon and A2MP.

Mr Raper’s application disputes these assertions, arguing that the bidder’s statement contains misleading and unverifiable information regarding the project’s value and viability. He further alleges that A2MP has created "pressure tactics" designed to deflate Canyon’s share price and coerce shareholder acceptances. A particular focus is on the opaque ownership and voting arrangements involving WMA Holding FZCO and its related party, described as "pivotal" shareholders whose dealings have not been fully disclosed.

Project Financing Suspended Amid Review

Compounding the takeover drama, AFG Bank Cameroon announced on 24 August 2026 that it had suspended further drawdowns under the AFG Facility. This suspension awaits a comprehensive review of the project’s development schedule, financial model, and a site visit to satisfy lender concerns. This move raises fresh questions about the project’s funding viability and the timing of the takeover bid.

These developments follow Canyon’s recent postponement of its first bauxite shipment from Minim Martap, reflecting the broader financial and operational challenges facing the company. The funding suspension and takeover bid have constrained Canyon’s ability to raise equity, forcing management to explore alternative financing avenues and cost containment measures.

Applicant Seeks Interim and Final Orders

Mr Raper is seeking a range of remedies from the Panel, including corrective and additional disclosures from A2MP, withdrawal rights for shareholders who have accepted the offer, and confirmation of A2MP’s guarantee of the AFG Facility. He also requests interim orders to prevent A2MP from processing acceptances, declaring the offer unconditional, or closing the bid until these issues are resolved.

Additionally, the application calls for restrictions on WMA Holding FZCO and its related party from accepting the offer or disposing of their Canyon shares pending further information. Should any breach of section 606 of the Corporations Act 2001 be established; relating to shareholding associations; the applicant seeks orders for relevant shares to be vested in ASIC for sale or their voting rights suspended.

The Panel’s handling of this application will be closely watched given the potential implications for shareholder rights, project funding, and control of Canyon Resources amid a fraught takeover contest.