Canyon Resources to Acquire 9.1% Stake in Camrail for Enhanced Logistics
Canyon Resources’ Camalco Cameroon will acquire a 9.1% stake in Camrail, including a 3.8% stake from SEBC and a 5.3% stake from TotalEnergies, for approximately A$3.4 million total. This move aims to strengthen logistics for the Minim Martap bauxite mine.
Canyon Resources’ subsidiary, Camalco Cameroon, has received approval to acquire a 9.1% stake in the railway company Camrail. This acquisition includes a previous purchase of a 3.8% stake from Société d’Exploitation des Bois du Cameroun (SEBC) last February, and a planned 5.3% stake purchase from TotalEnergies, which is expected to conclude by the end of March.
The total cost of these equity interests amounts to approximately A$1.4 million for the stake from SEBC and A$2 million from TotalEnergies. Following the completion of both transactions, Camalco Cameroon will obtain a position on the board of Camrail. This investment is strategically aimed at enhancing logistical support for the Minim Martap bauxite mine located in northern Cameroon’s Adamawa Region.
Canyon Resources emphasizes the significance of the Minim Martap project, describing it as a standout “Tier 1 bauxite project” with the potential for long-term, cost-effective operations to supply high-quality bauxite amidst a demanding market. The acquisition from TotalEnergies is pending internal approval from the management of Total Cameroon.
In summary, Camalco Cameroon, a subsidiary of Canyon Resources, is set to acquire a 9.1% stake in Camrail, enhancing its logistical capabilities for the Minim Martap bauxite mine. The investment reflects Canyon Resources’ commitment to optimizing operations and capitalizing on market opportunities. The successful completion of the acquisition awaits final approval from Total Cameroon.
Original Source: energycapitalpower.com
