Canyon Resources announced last week that it is planning for a new strategic investment by Eagle Eye Asset Holdings Pte Ltd (EEA) to fund its ongoing development of the Minim Martap Bauxite Project in Cameroon.
The firm says the investment will total between US$24.7 million and US$59.7 million depending upon the exercise of built-in options. The investment itself would consist of the placement of 150 million new shares with a par value of US$0.07 per share. Further, EEA will agree to exercise all of its existing 202.9 million options at the same price.
Canyon has agreed to issue another 500 million new options to EEA at the same price per option. The options will expire on December 26, 2026 and will be subject to positive progression at Minim Martap Bauxite Project.
Finally, Gaurav Gupta will be appointed to the board of directors as a non-executive director. He will serve as EEA’s nominee on the board.
Canyon Chief Executive Officer, Jean-Sebastien Boutet said in a press release that the investment is good news for both firms.
“We welcome this ongoing show of support from Eagle Eye Asset Holdings. This significant Strategic Investment demonstrates the commitment and enthusiasm EEA has for both Canyon and the Minim Martap Bauxite Project in Cameroon. The ability of Canyon to attract investment of this calibre is further evidence of the quality of our world-class Minin Martap Project. EEA has significant investments across various industries throughout the African continent and their knowledge base and ability to assist in moving resources projects through the mining lifecycle makes EEA a welcome investor in and partner for Canyon.”
“In addition, increasing the strength of Canyon’s balance sheet will assist the Company as it progresses discussions with the Government of Cameroon regarding the issue of a Mining Licence for Minim Martap Project and progressing toward production status,” he continued.
“We are pleased to make this transformational strategic investment in Canyon,” opined EEA’s President & CEO for Mining Investments, Pramod Prusty. “We strongly believe that the project can transform Cameroon and position the country as the new hub in the green bauxite and aluminium sector. We have a successful track record of investing in and developing world-class projects in Africa and our aim is to repeat it with Canyon and the project.”