Camalco Cameroon, a subsidiary of Canyon Resources, has been approved to acquire a 9.1% stake in Camrail by purchasing a 3.8% share from SEBC and a 5.3% share from TotalEnergies. This investment aims to reduce logistics risks for the Minim Martap bauxite mine in northern Cameroon. CEO Jean-Sebastien Boutet highlighted the significance of the bauxite project as a low-cost operation.
Canyon Resources’ subsidiary, Camalco Cameroon, has received necessary approval to acquire a 9.1% equity stake in the railway company Camrail. Previously, in February, Camalco Cameroon purchased a 3.8% stake from the Société’ d’Exploitation des Bois du Cameroun (SEBC) and plans to acquire an additional 5.3% stake from TotalEnergies by the end of March.
The stakes were acquired with an upfront cash payment of approximately A$1.4 million for the SEBC share and A$2 million for the stake from TotalEnergies. Following these acquisitions, Camalco Cameroon will gain a position on Camrail’s board, enhancing their influence in the company.
Canyon Resources has emphasized that this investment in Camrail will significantly reduce operational risks by optimizing logistics for the Minim Martap bauxite mine, located in the Adamawa Region of northern Cameroon. “Minim Martap is a standout, Tier 1 bauxite project, which Canyon believes has all the required characteristics to become a long-term, low-cost operation,” stated CEO Jean-Sebastien Boutet.
The acquisition from TotalEnergies is pending internal approval from the apex committee of Total Cameroon, ensuring compliance with corporate governance.
In conclusion, Camalco Cameroon’s acquisition of a 9.1% stake in Camrail represents a strategic investment aimed at optimizing logistics for the Minim Martap bauxite mine. With the intention to secure board representation and the movement towards lowering operational risks, this initiative will bolster Canyon Resources’ position in the region’s growing market.
Original Source: energycapitalpower.com
