Canyon Resources Limited (ASX: CAY) has executed a bankable feasibility study (BFS) contract with leading Chinese engineering, procurement and construction (EPC) firm Changtian International Engineering Corporation of MCC (MCC-CIE), for the development of Stage 1 of Canyon’s Minim Martap bauxite DSO Project in Cameroon.
MCC-CIE is part of China Metallurgical Group Corporation (MCC), which is a wholly owned subsidiary of China Minmetals Corporation.
A leading Chinese EOC company, MCC-CIE works extensively with leading banks in China and as part of the BFS scope will ensure that the BFS is compliant to the requirements of those funding institutions.
Canyon Managing Director, Phillip Gallagher, said, the scope of the BFS work programme will preserve broader funding source options for the Project.
Canyon will deliver a BFS for the Minim Martap Project in 2021 and the contract with our new partner in MCC-CIE forms a core part of that delivery,” Mr Gallagher said.
“The BFS will provide all the required technical inputs for obtaining a mining permit in Cameroon. MCC-CIE is a leading EPC contractor with substantial African mining experience.
“Beyond the study itself, we have secured a strategic partner in MCC-CIE who will work with Canyon to deliver this world class Project and whose connection with the broader Minmetals group will be instrumental in our upcoming discussions in regard to Project offtake and funding arrangements.”
The scope of the BFS contract includes the mine and port infrastructure. A specialist engineering group will be engaged separately for the rail component of the BFS, and this appointment is in the final negotiation stage.
Australian-based Mining Plus who managed the PFS has been retained to focus on Resource and Reserve development and mining contract tendering, and to ensure continuity of transition and learnings from PFS to BFS.
Canyon is nearing completion of the assembly of the BFS team of employees, consultants and partners and will be re-commencing in-country face-to-face commercial and legal discussions with the representatives of the Government of Cameroon, Camrail and the Port Authority of Douala in January 2021.