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- Canyon Resources (CAY) wins a heated battle for research permits on the Makan and Ngaoundal bauxite tenements adjoining its Minim-Martap bauxite project in Cameroon
- While Canyon waited for the Cameroon government to grant extensions to the permits, Cameroon’s national mining company Sonamines and Chinese firm CREC 5 signed a Memorandum of Understanding (MOU) to carry out research work on the permit areas
- The memorandum was voided by the government for violating mining legislation, and Canyon has been granted two-year extensions to the research permits
- The extensions give Canyon the opportunity to complete feasibility studies on the permits and incorporate them into the broader project
- Shares in Canyon are trading 4.76 per cent down at 10 cents.
Canyon Resources (CAY) has won a heated battle for research permits on the Makan and Ngaoundal bauxite tenements adjoining its Minim-Martap bauxite project in Cameroon.
Prior to the permits’ expiry in July last year, Canyon subsidiary Camalco applied to extend the permits and for an exploitation license over Minim-Martap.
While Canyon awaited a response from the government, Cameroon’s national mining company Sonamines and Chinese firm CREC 5 signed a Memorandum of Understanding (MOU) to carry out research work on the Makan-Ngaoundal research permits.
Camalco was unaware of Sonamines and CREC 5 negotiating the agreement.
The Cameroon Minister for Mines, Industry and Technological Development soon voided the memorandum for violating Cameroon mining legislation, and Camalco has now received two-year extensions to the Makan and Ngaoundal research permits.
Separately, Canyon has written to CREC 5 stating its entry into the MOU has clearly breached a confidentiality agreement between the companies because Canyon shared project data with CREC 5 in 2020.
Canyon Managing Director Phillip Gallagher said the extensions remove the uncertainty created by the actions of Sonamines and CREC 5.
“We would like to publicly acknowledge the swift action of the Minister in addressing the issue. It gives investors great confidence that the State of Cameroon acts swiftly and in the manner which ensures its laws are respected,” said Mr Gallagher.
“We are also pleased to have recently received the signatures of over 15 relevant Ministries in Cameroon approving the terms of the negotiated Mining Convention for the Minim Martap Permit and we look forward to executing the Mining Convention with the State of Cameroon in the near future.”
Camalco is still waiting to be granted the exploitation licence but says it’s imminent.
The extensions give Canyon the opportunity to complete feasibility studies on the permits and incorporate them into the broader project.
In the first year, minimum work obligations require Canyon to finalise resource drilling to expand, improve and upgrade the current mineral resource category.
In the second year, Canyon plans to continue infill drilling on priority targets according to JORC standards, conduct supplementary feasibility studies including mining, metallurgy and infrastructure programs, and undertake a resource estimation.
Shares in Canyon were trading 8.57 per cent down at 9.6 cents at 1:10 pm AEDT.
