PERTH (miningweekly.com) – Junior Canyon Resources has secured a near A$12.1-million strategic placement with Eagle Eye Asset Holdings to advance the development of its Minim Martap bauxite project, in Cameroon.

Under the placement, Eagle Eye will subscribe for more than 81.12-million shares in Canyon, priced at 6c each, representing a 41.8% premium to Canyon’s 30-day volume weighted average share price and a 40.2% premium to the company’s 15-day volume weighted average share price.

The placement will give Eagle Eye a 19.9% shareholding in Canyon, making it Canyon’s largest shareholder.

The placement will be undertaken within Canyon’s existing placement capacity and will not require shareholder approval.

Under the subscription agreement, Eagle Eye will also receive one unlisted option for each placement share, each with an exercise price of 7c and an expiry date in August 2025.

“Canyon is very pleased to welcome Eagle Eye as a long-term, strategic investor. Eagle Eye’s track record in Africa makes them a highly attractive partner for Canyon as we finalise our permits and approvals required for development. To be able to attract and secure support from EEA is a strong vote of confidence in the project and the long-term vision for Minim-Martap and we look forward to progressing the project through the development cycle and creating value for all stakeholders,” said Canyon CEO Jean-Sebastien Boutet.

A bankable feasibility study into the Minim Martap project confirmed an initial 20 year mine life, with the project expected to produce 6.4-million tonnes of high-grade bauxite a year, based on an updated proven ore reserve of 108.91-million tonnes, grading 51.1% total alumina and 2% total silica, as well as a total mineral resource estimate of over 1-billion tonnes, at 45.3% total alumina and 2.7% total silica.

The study estimated that the project would require a capital investment of $253-million, and would have a C1 operating cost of some $23.95/t of 51.1% alumina export product, making Minim Martap competitive in supplying some of the world’s highest grade bauxite.