Fresh from picking up the major Cameroon-based Minim Martap bauxite project, Canyon Resources is now rattling the tin for $5 million.
The company has received commitments from institutional and sophisticated investors to raise the $5 million in a heavily oversubscribed placement.
The placement will see the issue of 32.3 million new shares at 15.5 cents per share under the Company’s existing 7.1 placement capacity.
The placement price represents an 8.3% discount to the 30-day volume weighted average price (VWAP) of $0.163 and a 16.9% discount to the 15-day VWAP of $0.181.
Funds raised will go towards further developing the project including reviewing existing geological, metallurgical and environmental data; commencing geological works, including confirmatory and exploration drilling; commencing geological, environmental, community & infrastructure studies; and defining an initial JORC (2012) compliant resource.
We are delighted to welcome new, high calibre institutional investors onto our register. The investors have the capacity to support the Company as we advance the Minim Martap Bauxite Project in Cameroon,” Canyon Resources Managing Director Phillip Gallagher stated.
“We are now in a strong financial position as we start the exciting process of developing such a large-scale bauxite asset.”
The Cameroon-based Minim Martap project contains one of the world’s most appealing undeveloped bauxite deposits, boasting very high-grades with high-tonnage and low impurities.
The project is well advanced, with 88 million tonnes averaging 41.8% Al2O3 and 1.3% SiO2 falling into the Indicated category.
The capital raising is expected to be completed within the next 5 business days.
BW Equities Pty Ltd was the Lead Manager to the placement.