Canyon director’s investment highlights belief in bauxite project
Canyon shareholders have green-lighted the issue of shares to non-executive director and cornerstone investor Peter Su, who will continue to hold more than 9% of its shares.
Su’s subscription for 6.77 million shares under the recent $6.2m placement priced at 8c each is a significant show of confidence in the company and its flagship Minim Martap bauxite project.
The Perth-based strategic investor first became a substantial shareholder of Canyon Resources (ASX:CAY) in 2020 following a $5.6m investment.
What’s notable is that the Su family is no stranger to bauxite, having historically held commercial interests in bauxite and alumina refining in China.
Su himself has and will continue to assist with accelerating the development of Minim Martap along with providing introductions and commercial assistance in relation to bauxite offtake and project financing.
The Minim Martap project in Cameroon has an ore reserve of 99 million tonnes grading 51.6% aluminium oxide and 2.4% silica dioxide within a broader resource of 1 billion tonnes at 45.3% aluminium oxide and 2.7% silica dioxide.
It is currently envisaged as a two-stage, two-port project with initial production exported through Douala using existing rail and port infrastructure.
Canyon’s pre-feasibility study had outlined the first stage as a 5 million tonne per annum direct shipping ore project with low development capital requirements of just US$120m ($163.35m).
Minim Martap is also expected to have its green credentials locked down as its high-grade nature should require less caustic soda consumption and lower red mud disposal costs while requiring less energy for processing.
This article was developed in collaboration with Canyon Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.