AMN - CAMEROON: Funds raised for Minim Martap project

Canyon Resources has closed a share purchase plan (SPP) after receiving applications for $843,000 worth of shares. This follows a placement completed in December 2019 which raised $2.5 million with the funds raised from both to progress the Minim Martap Bauxite Project in Cameroon.

The SPP, which has seen the issue of 5.26 million shares opened on December 6, 2019, with eligible shareholders offered the opportunity to subscribe for up to $30,000 worth of fully paid ordinary Canyon shares.

This was at the same price as the placement, which was 16 cents per share.

Minim Martap is a global tier-one bauxite asset with exploration upside and encompasses two main deposits, Ngouandal and Minim Martap within 25 kilometres of each other.

Canyon continues to progress a pre-feasibility study (PFS) on the two-stage 100%-owned, 1,349sqkm project, which is adjacent to Canyon’s Birsok Bauxite Project and nearby to an existing operating rail line.

Canyon has delineated a JORC 2012-compliant mineral resource of 892 million tonnes at 45.1%, Al2O3 2.8% SiO2 at Minim Martap including a high-grade, low contaminant indicated resource of 431 million tonnes at 48.8% Al2O3, 2.6% SiO2 (total) which contains substantial zones of greater than 50% Al2O3.

In November 2019, Canyon delivered a scoping study for stage one of Minim Martap as an interim milestone in the PFS.

Canyon expects to present the PFS as a two-stage development opportunity in the first half of 2020.

Stage two, which is being investigated as part of the PFS currently underway, is anticipated to unlock higher export volumes and lower operating costs via the installation of the Kribi rail extension allowing for higher production rates through the existing deep-water port of Kribi.

The exploration upside comes from the fact that less than 50% of the project’s bauxite plateau have been explored to date, providing the potential to further grow the resource.

Canyon ended 2019 with $3.96 million in cash, which has since been bolstered by the SPP funds.

www.canyonresources.com.au