Canyon Resources Limited has acquired a 9.1% stake in Camrail SA through its subsidiary Camalco, enhancing logistics for its bauxite mining operations. The deal includes a purchase of shares from SEBC and Total Energies, pending regulatory approval, and aims to improve transportation from mine to port.
Canyon Resources Limited, a prominent American mining firm, has announced through its subsidiary, Camalco Cameroon SA, its acquisition of a 9.1% stake in Camrail SA, the key operator of Cameroon’s railway network. This strategic acquisition, as noted in their press release, is aimed at enhancing logistics for the development of a significant bauxite deposit, Minimap, which holds an estimated 109 million tons of bauxite ore. This endeavor seeks to streamline efficient transportation from the mine to the port, thereby reducing logistical risks.
Under the terms of the agreement, Camalco will purchase a 3.8% share from the Société d’exploitation des Bois du Cameroun (SEBC) for 576 CFA BEAC, translating to approximately 1.4 million Australian dollars. Additionally, regulatory approval is pending for the acquisition of a further 5.3% stake from Total Energies Marketing Cameroon SA at a price of 813 CFA BEAC, which amounts to around 2 million Australian dollars.
Canyon Resources has attracted a diverse group of investors, including Paramount BioCapital Asset Management, Hedgehog Capital, Cantara, Heller Capital Partners, Milfam, and Iroquois Capital. The company, headquartered in Golden, Colorado, specializes in metallurgy and mining.
Camrail SA has been operating since 1999, having secured a 20-year concession for the national railway network. It is a subsidiary of the French investment group Bolloré, with its operations managed through Comazar, also a Bolloré subsidiary. Camrail’s headquarters is located in Douala, Cameroon.
Canyon Resources Limited’s acquisition of a 9.1% stake in Camrail SA signifies a strategic move towards optimizing logistics for its bauxite mining operations in Cameroon. The financial investment reflects Canyon’s commitment to enhancing transportation efficiency, with backing from notable investors. This acquisition not only strengthens Canyon’s operational capabilities but also underscores the importance of infrastructure in resource development.
Original Source: www.akm.ru
