Canyon Resources (ASX:CAY) has struck a $215 million financing package, covering a $205 million placement and $10 million worth of options, to streamline further development at the Minim Martap Bauxite Project in Cameroon.
The company will issue around 790 million shares through the placement, offering shares at $0.26 per share, representing a 9.6% discount to the five-day volume weighted average price (VWAP) of $0.29.
Canaccord Genuity and Sternship Advisers are acting as the joint lead managers and bookrunners to this placement.
The first tranche intends to return $36 million, where the conditional tranche seeks to achieve the remaining $170 million from Eagle Eye Asset Holdings and Afriland First Bank’s wholly owned subsidiary Afriland Bourse & Investissement.
As a major shareholder of the company, Eagle Eye has committed to subscribe for around $100 million, while Afriland has committed to around $70 million.
Eagle Eye has also committed to exercising 137 million options at a price of $0.07 to raise the remaining $10 million.
This will maintain Eagle Eye’s holding in Canyon to 56.5%, while Afriland will gain a 10.1% holding.
Proceeds raised will be used to commence operations at the Minim Martap Project, scheduled to begin in early 2026.
CEO Peter Secker says the investments put forward by shareholders highlights the importance of the Minim Martap Project.
“This funding will enable us to accelerate the development of Minim Martap and increase our strategic investment in Camrail, providing greater control and certainty over the transport and logistics network that underpins the project, while also positioning us to expand operations in line with future rail capacity,” Secker says.
Canyon will use $46 million of the funds raised towards boosting its investment in Camrail, to de-risk transport and logistics networks for the project.
Canyon Resources is focused on developing the Minim Martap Project to be a “long-life, global-scale” project scheduled for first production in early 2026.
Write to Maddison Elliott at Mining.com.au
Images: Canyon Resources
