Canyon Resources’ (ASX:CAY) subsidiary Camalco Cameroon plans to acquire a 9.1% stake in railway transportation company Camrail to strengthen logistics pathways to develop the Minim Martap Bauxite Project in Africa.
Under the two share sale agreements with Total Energies Marketing Cameroun and Societe d’Exploitation des Bois du Cameroun (SEBC), Camalco acquired a 3.8% stake in Camrail from SEBC for $1.4 million in late February 2025.
Camalco will also acquire a 5.3% stake in Camrail from Total Energies for $2 million.
The completion of the transaction is subject to conditions being met, including internal approval by the Apex Committee of Total Energies. This is expected to be achieved by the end of this month.
Canyon, which has a market capitalisation of $354.79 million, says executing these agreements and investment in Camrail, which operates Cameroon’s rail network, further de-risks the company’s position in securing and optimising the logistics solution for Minim Martap.
CEO Jean-Sebastien Boutet says Minim Martap is a tier-one bauxite project that Canyon believes has the required characteristics to become a long-term, low-cost operation.
“To unlock the significant value potential of Minim Martap, Canyon has been focused on progressing and completing key discussions with the Ministry of Mines, Ministry of Transport, the Port Authority of Douala, Camrail and other relevant authorities to sign agreements for rail and port and secure logistics support,” Boutet says.
“This acquisition is a significant step forward in gaining access to rail infrastructure and delivering on our logistics objectives in the first half of 2025.”
In 2022, Canyon completed a Bankable Feasibility Study (BFS), which confirmed Minim Martap as a “robust”, long-term asset producing up to 6.4 million tonnes of bauxite for an initial 20 years.
The 20-year mining schedule represents 10.6% of the current project’s resource and technical studies have identified opportunities for a future increase in production tonnages.
The Minim Martap Project has an ore reserve of 109 million tonnes @ 51.1% aluminium oxide and 2% silicon dioxide and a resource estimate of 1.027 billion tonnes @ 45.3% aluminium oxide.
Write to Aaliyah Rogan at Mining.com.au
Images: Canyon Resources
