Canyon Resources (ASX:CAY) - Outgoing Managing Director, Phillip Gallagher
Outgoing Managing Director, Phillip Gallagher
Source: Canyon Resources
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  • Managing Director of Canyon Resources (CAY) Phillip Gallagher will formally step down, effective July 1
  • News of the transition was first announced in November 2021, coinciding with the appointment of Jean-Sebastien Boutet as CEO
  • Canyon has also received firm commitments from institutional and sophisticated investors to raise $5 million via a share placement
  • The money will be used to advance the Minim Martap bauxite project in Cameroon following the release of the bankable feasibility study (BFS)
  • Shares in Canyon Resources were down 31 per cent today, closing at 6 cents each

Managing Director of Canyon Resources (CAY) Phillip Gallagher will formally step down, effective July 1.

Coinciding with the appointment of Jean-Sebastien Boutet as CEO in November 2021, Canyon also announced the transition of Mr Gallagher to a Non-Executive Director role to finalise the handover of his previous role to Mr Gallagher.

Canyon has also received firm commitments from new and existing shareholders to raise $5 million via a share placement.

The funds will be raised through the issue of 111,111,110 new fully-paid ordinary shares to institutional and sophisticated investors at a price of 4.5 cents each.

This price represents a 48 per cent discount to Canyon’s last closing price of 8.7 cents on April 29 and a 51 per cent discount to the 15-day volume-weighted average price of 9.2 cents.

Commitments have been received from Mr Boutet for $110,000 and Non-Executive Director and major shareholder Peter Su for $300,000.

Participants will also receive one free attaching option for each share subscribed for, exercisable at 0.7 cents with expiry two years from issue.

Canyon will use the money to advance the Minim Martap bauxite project in Cameroon following the release of the bankable feasibility study (BFS).

The BFS confirmed the project will produce up to 6.4 million tonnes of high-grade bauxite per year over the next 20 years.

For the first 20 years, the bauxite grade is expected to average 51.1 per cent total alumina and an average of two per cent total silica.

“The BFS confirms that the Minim Martap project has the quality and scale to meet long-term demand that will be required worldwide in coming years,” Mr Boutet said.

“We are seeing persistent supply shocks and other geopolitical events impacting bauxite supply and therefore aluminium industry. This presents additional justifications for new
bauxite projects such as Minim Martap.”

Shares in Canyon Resources were down 31 per cent today, closing at 6 cents each.

CAY by the numbers
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