Canyon raising funds for Cameroon bauxite

Canyon Resources has raised $2.5 million to accelerate a pre-feasibility study for its Minim Martap bauxite project in Cameroon, while also kicking off a $1.5 million share purchase plan.

The ASX-listed explorer announced today it had received commitments to place 15.6 million shares with existing and new shareholders, at an issue price of 16 cents per share.

Canyon will also launch a share purchase plan for eligible shareholders who missed out on the placement, also priced at 16 cents per share.

“Canyon is delighted with the response to this placement and would like to acknowledge the support of its existing shareholders,” managing director Phillip Gallagher said.

“The announcement of the SPP will give all existing shareholders the chance to also participate in this capital raising.”

Last month, Canyon completed a scoping study for the Minim Martap mine, which flagged a two-stage, two-port development opportunity.

The study estimated $US80 million ($116 million) in development capital would be required to develop the mine.