Canyon Resources plans to acquire a 9.1% stake in Camrail through Camalco Cameroon, consisting of a 3.8% stake from SEBC and a 5.3% stake from TotalEnergies. This investment, totaling A$3.4 million, aims to secure logistics for the Minim Martap bauxite mine and enhance board representation.
Canyon Resources, through its subsidiary Camalco Cameroon, has obtained approval to acquire a 9.1% stake in railway company Camrail. This acquisition will occur in two phases: a 3.8% stake purchased from Société’ d’Exploitation des Bois du Cameroun (SEBC) and a forthcoming 5.3% stake from TotalEnergies, collectively valued at approximately A$3.4 million.
The total investment includes approximately A$1.4 million for the SEBC acquisition, followed by A$2 million for the stake from TotalEnergies. Securing these equity positions will allow Camalco Cameroon representation on Camrail’s board, enhancing its influence in railway logistics.
Canyon Resources indicated that investing in Camrail will mitigate logistical risks for its Minim Martap bauxite mine project in Cameroon. This mine is located in the Adamawa Region and is viewed as pivotal for supporting lower-cost operations while delivering high-quality bauxite to a growing market.
Canyon Resources’ acquisition of a 9.1% stake in Camrail by its subsidiary, Camalco Cameroon, is strategic for optimizing logistics for the Minim Martap bauxite mine. The phase-wise procurement emphasizes an investment of approximately A$3.4 million, allowing for board representation and potentially reducing operational risks in the growing bauxite market.
Original Source: energycapitalpower.com
