CAY draws down first US$26M to develop giant bauxite project

Our 2025 Wise-Owl Pick of the Year Canyon Resources (ASX: CAY) just drew the first US$26M tranche of its U$140M loan facility…

… to “purchase rolling stock” and “progress key infrastructure workstreams”.

CAY is currently in the early stages of developing its giant bauxite project in Cameroon.

CAY owns one of the world’s biggest undeveloped bauxite deposits with an estimated 1 billion tonne JORC resource.

CAY has already started ordering locomotives and wagons for its project with first deliveries expected in Q1-2026 - ahead of the first bauxite shipments that CAY is targeting in H1-2026.

With the rest of the cash drawdown today, CAY is progressing mine, haul road, rail and port infrastructure works.

CAY had already started infrastructure works ~2.5 weeks ago - at the time it held a big cutting ceremony to celebrate works starting at CAY’s project:

(Source)

Here are photos of the ribbon cutting ceremony:

(Source)

That second image features Cameroon’s interim Minister of Mines, Industries & Technological Development Prof. Fuh Calistus Gentry. Camalco’s CEO Mr Rana Singh and CAY’s Executive Chairman Mr Mark Hohnen - as well as community leaders and members,

The ribbon cutting ceremony marked the start of construction works on two of the biggest infrastructure pieces for its project:

1. Building from scratch the project’s In-land Rail Facility (IRF) - the IRF is important because it is the link between the trucks loading the bauxite at the mine site and the trains transporting them to the port for exporting to customers.

AND

2. Upgrading the haul roads CAY will be using to transport its bauxite - The haul roads being up to standard is also important because well built haul roads mean CAY can load heavier trucks with bauxite at the mine site. Heavier trucks = higher output from the project…