- Canyon Resources (CAY) has secured $12.1 million through a subscription agreement with Eagle Eye Asset Holdings (EEA)
- Eagle Eye agreed to subscribe for $12,174,000 worth of fully paid shares at six cents each via a strategic placement, representing a 19.9 per cent shareholding in Canyon on issue
- The funds raised will go towards advancing the company’s Minim-Martap project in Cameroon
- As part of the agreement, EEA will have the right to nominate one representative to the Canyon Board of Directors
- Shares in Canyon Resources are up 20.9 per cent, trading at 5.2 cents at 12:50 pm AEDT
Canyon Resources (CAY) has secured $12.1 million through a subscription agreement with Eagle Eye Asset (EEA) Holdings to advance its Minim-Martap project.
Under the agreement, EEA, has agreed to subscribe for $12,174,000 million shares at six cents a piece via a strategic placement.
The issue price represents a premium of 41.8 per cent to the company’s 30-day volume-weighted average price (VWAP).
As part of the placement, EEA will also receive one unlisted option for each share with an exercise price of seven cents expiring on August 10, 2025.
Following completion of the placement, EEA will hold 19.9 per cent of the issued share capital of Canyon, becoming the company’s largest shareholder.
Canyon said all funds raised will go towards advancing the company’s Minim-Martap project in Cameroon.
EEA’s President and CEO for Mining Investments Pramod Prusty said the company is confident about the future development prospects of the project.
“Our vision with this investment is to participate in the bauxite and aluminium value chain from Africa and importantly, we have a successful track record of investing and developing projects in Africa and are looking to repeat this success with Canyon and the Minim-Martap project.”
Canyon CEO Jean-Sebastien Boutet said EEA’s track record makes them a highly attractive partner for Canyon.
“To be able to attract and secure support from EEA is a strong vote of confidence in the project and the long-term vision for Minim-Martap and we look forward to progressing the project through the development cycle and creating value for all stakeholders.”
Upon issue of the placement shares, EEA will have the right to nominate one representative to the Canyon board.
The placement is expected to settle on December 22, with shares issued on December 23.
Shares in Canyon Resources were up 20.9 per cent, trading at 5.2 cents at 12:50 pm AEDT.