Canyon's Makan and Ngaoundal bauxite research licences, which border the Minim-Martap Project in Central Cameroon, Africa, have been awarded two-year extensions. Camalco, a subsidiary of Canyon (ASX:CAY), is still waiting for an exploitation licence for the Minim-Martap research permit, but expects it to be granted soon, as does Camalco's and Cameroon's entrance into the Mining Convention for the project.
On February 18, the Société Nationale des Mines (Sonamines) and China Railway No. 5 Engineering Group (CREC 5) announced the signing of a Memorandum of Understanding (MoU) to conduct research in the Makan and Ngaoundal research permits areas.
However, Camalco was not a part of the agreement (MoU) and also unaware about the fact that Sonamines and CREC 5 were negotiating a research permit area agreement.
Sonamines and CREC 5's activities were declared null and void by the Minister of Mines, Industry, and Technological Development, since they were not in conformity with Cameroon's Mining Code. The provisions of the Mining Convention have been approved by more than 15 signatories.
CAY managing director Phillip Gallagher expressed his joy that the extensions had been granted, removing the uncertainty created by Sonamines' and CREC 5's actions.
“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 Phillip Gallagher.
“Canyon is 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. We look forward to executing the Mining Convention with the State of Cameroon in the near future,” added Phillip Gallagher.
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