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Canyon Resources (ASX:CAY) - Managing Director, Phillip Gallagher - The Market Herald
Managing Director, Phillip Gallagher
Source: Canyon Resources
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  • Bauxite and gold exploration company Canyon Resources (CAY) receives firm commitments to undertake a $6 million placement
  • More than 77.2 million new fully paid ordinary shares will be issued to institutional and sophisticated investors at 8 cents each
  • Subject to shareholder approval, Non-Executive Director Peter Su will subscribe for more than 6.77 million shares
  • Once received, Canyon will use the money to complete the feasibility study for the Minim-Martap Project and advance project and offtake discussions
  • Canyon is down 6.45 per cent on the market with shares trading at 8.7 cents at 3:43 pm AEST

Bauxite and gold exploration company Canyon Resources (CAY) has received firm commitments to undertake a $6 million placement.

The company entered a trading halt on July 29 but did not disclose how much it intended to raise or how it would use the funds.

A total of 77,257,157 new fully paid ordinary shares will be issued to institutional and sophisticated investors at 8 cents each.

This price represents a 14 per cent discount to Canyon's last closing price of 9.3 cents on July 28 and a 17.8 per cent discount to the five-day volume-weighted average price of 9.7 cents.

Subject to shareholder approval, Non-Executive Director Peter Su will subscribe for 6,771,482 new shares.

Once received, Canyon will use the money to complete the feasibility study for the Minim-Martap Project and advance project and offtake discussions.

Managing Director Phillip Gallagher commented on the placement and how the company will use the proceeds.

"The placement will allow Canyon to complete the feasibility study and progress the delivery of important agreement required for the development of the Minim-Martap Project with the Government of Cameroon and potential project partners," Mr Gallagher said.

"This is an exciting time for Canyon as we transition from a predominantly exploration driven company to a project builder taking one of the world's most substantial bauxite projects towards development."

Canyon was down 6.45 per cent on the market with shares trading at 8.7 cents at 3:43 pm AEST.

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