A2MP Investments FZCO has announced an off-market takeover bid to acquire all ordinary shares it does not already own in ASX-listed Canyon Resources Limited (ASX: CAY). Canyon Resources is a mining development company primarily focused on its flagship Minim Martap Bauxite Project in Cameroon, one of the world’s highest-grade bauxite deposits. A2MP, which currently holds a 55.56% interest, is offering A$0.05 cash for each outstanding share. This fully funded, 100% cash offer is not subject to financing or due diligence conditions.
A2MP’s rationale for the offer is driven by concerns over the Minim Martap Bauxite Project’s viability. The bidder believes that market conditions and project fundamentals have materially deteriorated since Canyon’s Definitive Feasibility Study (DFS) was completed in September 2025. Updated assumptions, including a lower bauxite premium and increased freight costs, along with higher levies and logistics capital expenditure due to inflation, suggest Canyon’s existing capital structure may be insufficient to fund development. This could necessitate substantial additional capital and lead to further shareholder dilution.
The offer, priced at a discount to Canyon’s recent trading levels, is presented as a certain cash value for shareholders. A2MP highlights the risks for minority investors who do not accept, including exposure to significant funding shortfalls, project development and execution risks, and country-specific operating challenges. The company’s shares have already experienced a substantial decline, and remaining shareholders would face limited liquidity and potential delisting from the ASX. If successful, A2MP intends to delist Canyon and review the project’s configuration, scale, and development pace.
