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Canyon to take full ownership of Cameroon project

12th October 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Canyon Resources has inked a letter of intent with its joint venture partner Altus Strategies to gain full ownership of the Birsok bauxite project, in Cameroon.

Under the agreement, Canyon would issue Altus 15-million ordinary shares, and a further 100-million some 12 months after the initial issue, with the second tranche of shares to be subject to a 12 month voluntary escrow.

The second part of the transaction would see Canyon issue five-million ordinary shares on the execution of a mining convention on the Minim Martap project, which is within the Birsok licence, as well as a $1.50/t royalty on the ore mined and sold from the Birsok project.

Canyon MD Phillip Gallagher noted that the agreement would allow the company to control the Birsok project permits, which are located between the Minim Martap project and the rail line, removing the need to consult and potentially reach an agreement with a minority joint venture partner in relation to the development plans to build a long-term, high-grade bauxite mining and export operation.

Altus CEO Steven Poulton said that the Minim Martap and Birsok projects are potentially very substantial, having high grades, low impurities and being strategically located adjacent to an operating rail line that runs to the coast.

“We believe that significant potential exists for Canyon to fast-track the mining and export of a premium grade bauxite product.

“Our agreement with Canyon further validates our project generator business model, generating returns from exploration, while growing a portfolio of potential high value royalty income streams. We look forward to updating shareholders on this transaction in due course.”

The Minim Martap project encompasses two deposits over 1 349 km2. The three exploration permits covering the area are valid for a three-year period, and contain a number of predefined work commitments that are consistent with Canyon’s development proposal.

Edited by Creamer Media Reporter

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