Perth-based mineral miner Canyon Resources Limited announced last week that it has secured a premium A$12.1 million strategic share placement that will aid it in going forward with development of its Minim-Martap bauxite project.
Per the firm, the strategic placement will consist of A$12.1 million in shares at A$0.06 per share. The share price represents a significant savings from Canyon’s typical trading price, as its weighted 30-day average through December 20 is A$0.42 per share.
Eagle Eye Asset Holdings Pte. Ltd. will receive the shares, giving it a 19.9 percent stake in the company at the completion of the placement. Branded as Fortuna Holdings SFO, the Singapore-based firm has previously been successful in investing and developing projects around the globe, including on the African continent.
EEA’s President & CEO for Mining Investments, Pramod Prusty, said in a press release that the share placement represents a significant milestone for the firm.
“We are pleased to make this strategic investment into Canyon. We are confident about the future development prospects of the Minim-Martap Project and view Cameroon as the new source of high-grade bauxite supply that will feed the world’s growing demand. Our vision with this investment is to participate in the bauxite and aluminium value chain from Africa and importantly, we have a successful track record of investing and developing projects in Africa and are looking to repeat this success with Canyon and the Minim-Martap Project.”
Canyon Chief Executive Officer, Jean-Sebastien Boutet, expressed his firm’s happiness at the new investment.
“Canyon is very pleased to welcome EEA as a long-term, strategic investor. EEA’s track record in Africa makes them a highly attractive partner for Canyon as we finalise our permits and approvals required for development. To be able to attract and secure support from EEA is a strong vote of confidence in the Project and the long-term vision for Minim-Martap and we look forward to progressing the Project through the development cycle and creating value for all stakeholders.”
Canyon says it hopes to have EEA as a long-term strategic partner due in large part to its successful track record for investment in Africa.