Thomson Geer advises Canyon Resources Limited on A$215m strategic funding package

Thomson Geer has advised ASX-listed African bauxite miner Canyon Resources Limited on a A$215 million capital raising comprising a two-tranche placement to raise approximately A$205 million and an options exercise to raise approximately A$10 million.

The funds raised will primarily be used to accelerate development of Canyon's flagship Minim Martap Project in Cameroon. Bauxite is used to produce alumina, which is used to make aluminium, an essential metal to help drive the world's energy transition.  

Canyon's major shareholder Eagle Eye Asset Holdings committed to invest approximately A$110 million while Afriland Bourse & Investissement (a wholly owned subsidiary of Afriland First Bank, which is the largest financial services group in Cameroon) committed to subscribe for up to approximately A$70 million under tranche 2 of the placement, subject to shareholder approval.

Thomson Geer advised on all aspects of the strategic funding package, including the arrangements with   Eagle Eye Asset Holdings and Afriland Bourse & Investissement, as well as guidance on applicable foreign investment and takeovers laws.

The Thomson Geer team was led by Partner Scott Gibson, who said: "We are pleased to have assisted Canyon on all aspects of its strategic funding package to accelerate the development of the Mini Martap project into production and to enhance Canyon's in-country network and presence."

The company will also use the funding to invest in Cameroon's rail operator Camrail, providing greater control and certainty over the transport and logistics network that underpins the Project, while also positioning Canyon to expand operations in line with future rail capacity.

The Thomson Geer team also included Partner Michael Ng, Senior Associate Chris Seotis and Lawyer Charlie Mitchell.

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