In a promising development for the Minim Martap bauxite project in Cameroon, Canyon Resources has secured a significant financial boost to advance this ambitious venture. The company’s major shareholder, Eagle Eye Asset Holdings (EEA), has stepped up to underwrite the entire debt requirement needed to cover the purchase of 22 locomotives and 550 wagons, along with a five-year warranty and service agreement for the rolling stock. This financial commitment is valued at a robust 3.96 million.
Canyon Resources, which has been making strides in enhancing its project capabilities, notes that this financing will enable Camalco Cameroon—the operating arm for the Minim Martap project—to finalize negotiations and swiftly place an order for this essential rolling stock. The investment in locomotives and wagons represents a monumental landmark for the project, enhancing logistics and efficiency while showcasing Canyon’s steadfast confidence in its development.
The company has indicated that the acquisition of these long-lead items will play a pivotal role in ensuring reliable operations and cost-effectiveness. As they work diligently to finalize these purchases, the deal emphasizes the importance of having control over logistics at a time when the definitive feasibility study (DFS) is progressing smoothly and expected to be completed by the second quarter of this year.
Canyon’s CEO, Jean-Sebastien Boutet, expressed enthusiasm about the underwriting agreement, citing it as a significant step in minimizing risks associated with the Minim Martap project and moving closer to production. “Having our own rolling stock will significantly mitigate logistical challenges, allowing us to keep projects on schedule and under budget,” he noted.
Interestingly, the locomotives and wagons represent about 50% of the capital expenditure highlighted in the 2022 bankable feasibility study. This underscores the strategic importance of securing this funding, marking a turning point for both Canyon Resources and the Minim Martap project.
Canyon Resources continues to build on its positive relationship with EEA, acknowledging their significant role in the project’s ongoing success and growth. The mutual confidence between the management team and EEA reinforces the commitment to transforming the Minim Martap project from concept to reality, delivering long-term value to all stakeholders involved.
As developments unfold, the project aims to position itself as a leader in the bauxite trade, contributing to economic growth and infrastructure in Cameroon.
Stay tuned for further updates on this pivotal project, as Canyon Resources continuously strives to innovate and enhance its operational capabilities in the mineral sector.
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