Australian mining company Canyon Resources has secured a $124 million loan (approximately FCFA 78 billion) from its major shareholder, Eagle Eye Asset Holdings, to finance the acquisition of locomotives and railcars for the Minim-Martap bauxite project in Cameroon. This investment, representing nearly 50% of the overall project budget, is a key step towards the start of mining operations.
Canyon Resources Limited, through its Cameroonian subsidiary Camalco Cameroon, has secured key financing for the development of the Minim-Martap bauxite deposit. The company’s major shareholder, Eagle Eye Asset Holdings, has secured a $124 million loan, the proceeds of which will be used to purchase 22 locomotives and 550 railcars, as well as a five-year maintenance guarantee. The loan, granted on an unsecured basis, carries an interest rate of 12% per annum over a 60-month term, including a 12-month grace period. At the end of this period, Camalco will make semi-annual repayments over 48 months, with the first payment due 18 months after the first disbursement.
According to Jean-Sébastien Boutet, Managing Director of Canyon Resources, this investment represents approximately half of the total budget required to launch bauxite mining. He welcomed the financial support of the main shareholder, which makes it possible to take a key step towards the realization of the project. The acquisition of rolling stock is essential to ensure the transport of bauxite to the export port. Minim-Martap, which has one of the largest unexploited bauxite deposits in the world, requires a robust rail infrastructure to ensure the transport of the ore to international markets.
The financing comes as Canyon Resources restructures its management team to optimize the project’s financial strategy. The recent appointment of Kudzai Mtsambiwa as Chief Financial Officer (CFO), effective January 15, 2025, illustrates this desire to strengthen financial management and negotiations with partners. His role includes finalizing rail and port access agreements, completing the revised bankable feasibility study, and structuring additional financing required for the project. According to a source familiar with the matter, the definitive feasibility study is on track and should be finalized by the second quarter of 2025.
The announcement of this loan marks a major step forward for the exploitation of Minim-Martap bauxite. With this financing, Canyon Resources is consolidating its project and moving closer to effective production, which could have a significant impact on the Cameroonian mining economy. However, the success of the project still depends on several elements: the finalization of technical studies, obtaining logistical agreements and securing commercial outlets for the extracted bauxite. The year 2025 therefore promises to be decisive for the realization of this major project.
