Canyon executes Cameroon port and rail MoU

THE BOURSE WHISPERER: Canyon Resources (ASX: CAY) has executed a binding Memorandum of Understanding (MOU) with Bolloré Africa Logistics Cameroun SA and Camrail SA over both port and rail options for the company’s Birsok bauxite project in Cameroon.

Bolloré is the operator of the Douala Port in Cameroon, which is directly serviced by the existing Camrail rail line running from the Birsok project to the port.

Canyon explained it has had initial studies completed by experts on technical data supplied by Camrail, which it said indicate the rail line has the capability and capacity to transport commercial quantities of bauxite to the Douala

“The signing of an MOU with both Bolloré and Camrail is a very important step in the process of advancing the development of the Birsok project as a low CAPEX DSO bauxite mining operation utilising existing rail and port infrastructure,” Canyon Resources managing Director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.

“As the operators of the existing rail network and the port facility, both Camrail and Bolloré will be important partners with Canyon in the development and operation of the Birsok project and we are therefore very pleased that they are prepared to work with us at this initial stage to proactively investigate the logistical options for the Birsok project, and their commitment to working to negotiate terms and conditions for the entry into a master agreement for the provision of door to door logistics and transportation services to Canyon.

“We are very pleased with the positive and proactive approach from both companies and look forward to developing and finalising an infrastructure solution for the project.”