Canyon Resources to Acquire 9.1% Stake in Camrail

Canyon Resources has secured approval to acquire a 9.1% stake in Camrail through its subsidiary Camalco Cameroon. The stake includes a 3.8% share from SEBC and a 5.3% stake from TotalEnergies. The acquisition aims to optimize logistics for the Minim Martap bauxite mine. CEO Jean-Sebastien Boutet emphasizes the project’s potential value.

Canyon Resources, via its subsidiary Camalco Cameroon, has attained the necessary approvals to acquire a 9.1% interest in railway company Camrail. Previously, in February, Camalco Cameroon secured a 3.8% share from Société’ d’Exploitation des Bois du Cameroun (SEBC) and is set to acquire an additional 5.3% from TotalEnergies by the end of March.

The total investment for these acquisitions amounts to approximately A$1.4 million for the SEBC stake and A$2 million for the TotalEnergies stake. Following these transactions, Camalco Cameroon will gain representation on the Camrail board, marking a significant move for the company.

Canyon Resources believes that investing in Camrail will enhance its logistics capabilities for the Minim Martap bauxite mine located in northern Cameroon’s Adamawa Region. “Minim Martap is a standout, Tier 1 bauxite project… with all the required characteristics to become a long-term, low-cost operation,” stated Jean-Sebastien Boutet, CEO of Canyon Resources.

The finalization of the acquisition from TotalEnergies remains contingent upon obtaining internal approval from Total Cameroon’s apex committee. This structured approach underscores Canyon Resources’ commitment to bolstering its operational framework and logistical efficiency.

Canyon Resources’ strategic acquisition of a 9.1% stake in Camrail, through its subsidiary Camalco Cameroon, marks a pivotal development in enhancing logistical operations supporting the Minim Martap bauxite mine. The investments totalling approximately A$3.4 million underscore a deliberate effort to secure a significant position within the rail transport sector, anticipated to facilitate long-term operational success in a competitive market.

Original Source: energycapitalpower.com