The board of Cameroon rail network operator Camrail has given approval for Total Energies Marketing Cameroun and Societe d’Exploitation des Bois du Cameroun (SEBC) to enter into share sale agreements with ASX-listed Canyon Resources’ wholly owned in-country subsidiary Camalco Cameroon, which will acquire a strategic 9.1% investment in Camrail, as well as secure a position on the Camrail board upon the completion of the two acquisitions.

The execution of these agreements and investment in Camrail further de-risks the company’s position in securing and optimising the logistics solution for Canyon’s flagship Minim Martap bauxite project in Cameroon, the company posits.

One of Canyon’s focus areas is establishing and accessing a transport network within the region, notably within the mine and from mine-to-port. 

Camalco acquired a 3.8% equity interest in Camrail from SEBC for an upfront cash consideration of CFAfr575.7-million (about A$1.4-million), with this unconditional acquisition completed on February 28.

Camalco will separately acquire a 5.3% equity interest in Camrail from Total Cameroon for an upfront cash consideration of CFAfr812.85-million (about A$2-million).

Completion of this acquisition from Total Cameroon is subject to the remaining condition precedent of internal approval by the apex committee of Total Cameroon, which is expected to be completed by the end of the month.  

The total consideration of about A$3.4-million for the 9.1% holding in Camrail will be paid from the company’s existing cash reserves.

“This investment in Camrail is a major milestone for Canyon, as we continue to work on establishing an optimal logistics plan for the Minim Martap project.

“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, supplying a high-quality product into a growing and constrained market,” Canyon CEO Jean-Sebastien Boutet avers.

To unlock the project’s value, Canyon has been focused on progressing and completing key discussions with the Ministry of Mines, Ministry of Transport, the Port Authority of Douala, Camrail and other relevant authorities to sign agreements for rail and port and secure logistics support, he points out.

“We welcome the board of Camrail’s approval of the 9.1% stake sale previously held by Total Energy and SEBC, to Camalco and look forward to working alongside the current shareholders in Camrail, the State of Cameroon and Africa Global Logistics,” Boutet highlights.

“This acquisition is a significant step forward in gaining access to rail infrastructure and delivering on our logistics objectives in the first half of 2025, and I would like to take the time to recognise the ongoing hard efforts of the Canyon team as we rapidly develop Minim Martap towards production,” he adds.