Canyon Secures Strategic 9.1% Stake in Camrail, Aiming to Boost Minim Martap Bauxite Project
Deal News | Mar 19, 2025 | Globenewswire
Canyon Resources Limited has completed the acquisition of a 9.1% stake in CAMRAIL S.A through its subsidiary Camalco Cameroon SA. This acquisition, involving a 5.3% interest from Total Energies Marketing Cameroun S.A and a prior 3.8% interest from Société d'Exploitation des Bois du Cameroun (SEBC), was finalized by March 14, 2025, at a total cost of approximately XAF 1.39 billion (around A$3.4 million), utilizing existing cash reserves. This strategic investment grants Camalco a seat on the Camrail Board and is aligned with Canyon Resources’ initiative to develop a comprehensive transport and logistics network for the Minim Martap Bauxite Project in Cameroon, anticipated to become a significant, low-cost bauxite supplier. With the ongoing advancement of the project's Definitive Feasibility Study and other critical infrastructure discussions, Canyon aims to de-risk its logistics and ensure structured project execution ahead of its planned commencement of production in 2026.
Sectors
- Mining
- Transportation and Logistics
Geography
- Cameroon – Cameroon is the central location of the Minim Martap Bauxite Project and the focus of Canyon's strategic acquisition of stakes in the local rail operator, Camrail.
- Australia – Canyon Resources Limited is based in Perth, Australia, and therefore operates under Australian corporate jurisdiction.
Industry
- Mining – The article discusses Canyon Resources' investment in rail infrastructure to support its bauxite mining project, Minim Martap.
- Transportation and Logistics – The acquisition of stakes in Camrail highlights the transportation and logistics aspect, crucial for moving resources associated with the bauxite project.
Financials
- XAF 1,388,550,000 – Total consideration for the acquisition of a 9.1% stake in Camrail by Camalco.
- A$3.4 million – The approximate Australian Dollar equivalent of the acquisition cost for Camrail stake.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Canyon Resources Limited | Bidding Company | Company | An Australian-listed mining company focusing on developing the Minim Martap Bauxite Project in Cameroon. |
| Camalco Cameroon SA | Subsidiary | Company | A wholly owned subsidiary of Canyon Resources Limited facilitating the acquisition of Camrail shares. |
| CAMRAIL S.A. | Target Company | Company | The national railway operator in Cameroon, important for supporting bauxite transportation. |
| Total Energies Marketing Cameroun S.A. | Selling Company | Company | The entity selling its 5.3% stake in Camrail to Canyon's subsidiary. |
| Société d'Exploitation des Bois du Cameroun (SEBC) | Selling Company | Company | Sold a 3.8% stake in Camrail to Canyon's subsidiary. |
| State of Cameroon | Existing Shareholder | Government | An existing stakeholder in CAMRAIL S.A. |
| Africa Global Logistics | Existing Shareholder | Company | An existing stakeholder in CAMRAIL S.A. |
| Jean-Sebastien Boutet | CEO | Person | The Chief Executive Officer of Canyon Resources Limited. |