Map courtesy of Canyon Resources.
Canyon Resources Limited has announced the execution of a Strategic Partnership Agreement and Memorandum of Understanding (MOU) for the Minim Martap Bauxite Project (the Project) in Cameroon with Zhongye Changtian International Engineering Corporation of MCC (MCC-CIE).
MCC-CIE is the mining engineering division of global mining giant Metallurgical Corporation of China (MCC).
The agreement follows the awarding of the bankable feasibility study (BFS) contract for the development of Stage 1 of the Minim Martap Bauxite Project to MCC-CIE in December 2020.
The Strategic Partnership Agreement and MOU state that “In accordance with good cooperation between the parties during the BFS, Canyon and MCC-CIE shall commence a Comprehensive Strategic Partnership. MCC-CIE, as the Strategic Partner, would offer necessary assistance to Canyon in facilitating the off-taking and financing for the Project in China. MCC will also provide all necessary support to assist Canyon in technical, business off-taking and financial related issues, etc.”
Today Canyon Resources’ Managing Director, Phillip Gallagher, said: “Canyon has worked with MCC-CIE since late 2020 on the BFS for the Minim Martap Project and the signing of this Strategic Partnership and MOU is a very positive next step.”
“Executing the MOU with MCC-CIE is a testament to the sound relationship Canyon and MCC-CIE have established in a relatively short space of time, and MCC-CIE will introduce real options for project financing and off-take. It is a great benefit to Canyon to have a Strategic Partner with extensive experience in building and operating mining projects in Africa,” Mr Gallagher said.
“MCC-CIE is part of the MCC and Minmetals group of companies that own and operate mines across various commodities, alumina refineries and aluminium smelters. They know the Minim Martap Project very well due to their ongoing involvement with the BFS. It is exciting to have a technical and financial partner of the scale and calibre of MCC-CIE offering to substantially increase its involvement in the Project, thereby confirming MCC-CIE’s endorsement of the Minim Martap Project and Cameroon as a whole.”
Key details of the MOU and Strategic Partnership Agreement are:
- The parties have commenced a Comprehensive Strategic Partnership and will immediately hold regular meetings to promote the financing and execution of the Project.
- MCC-CIE will provide Canyon with all necessary support within its capacity to assist Canyon in technical, business, off-taking and financing related issues.
- The relationship which is created Strategic Partnership Agreement and MOU is until 31 December 2022 unless extended.
- The parties agree to reach a more comprehensive legally binding agreement for the implementation of the Project to replace the non-binding relationship established through the MOU and Strategic Partnership Agreement.