Cameroon: Canyon Resources to Acquire 9.1% Stake in Camrail

Camalco Cameroon, a subsidiary of exploration and mining company Canyon Resources, has received approval to acquire a 9.1% stake in railway transportation company Camrail.

Camalco Cameroon acquired a 3.8% stake in Camrail from exploration company Société’ d’Exploitation des Bois du Cameroun (SEBC) last February and will acquire a 5.3% stake from energy major TotalEnergies by the end of March.

The equity interests were acquired for an upfront cash consideration of approximately A$1.4 million and A$2 million respectively. Upon completion of the two acquisitions, Camalco Cameroon will secure a position on the Camrail board.

According to Canyon Resources, investment in Camrail is set to de-risk the company’s position in optimizing logistics support for the Minim Martap bauxite mine, situated 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, supplying a high-quality product into a growing and constrained market,” stated Jean-Sebastien Boutet, CEO, Canyon Resources.

Completion of the acquisition from TotalEnergies is subject to internal approval by the apex committee of the company’s Cameroonian subsidiary, Total Cameroon.