Altus Strategies has signed a letter of intent (LoI) with Canyon Resources to terminate its existing bauxite Joint Venture Agreement (JVA) with Canyon.


Image: Bauxite is primary ore of aluminium. Photo courtesy of Unknown/Wikipedia.

The company will transfer to Canyon a 100% interest in its Birsok and Mandoum licences (the Birsok project).

Under the terms of the LoI Altus will receive up to 30M new shares in Canyon and a royalty of US$1.5/t on ore mined and sold from the Birsok project. The Birsok project is located in central Cameroon and is contiguous with exploration licences covering the potentially substantial Minim Martap bauxite deposit (the Minim Martap project) which is owned by Canyon.


  • Altus to receive up to 30M Canyon shares and a US$1.5/t royalty on the Birsok project
  • Canyon trading at A$0.19 (approximately £0.10) per share
  • Altus currently holds 8M Canyon shares from existing joint venture
  • Canyon recently announced a JORC (2012) compliant resource at Minim Martap of 550MT at an average grade of 45.5% total Al2O3and total 2.06% SiO2, comprising:
  • Indicated 88MT averaging 41.8% Al2O3and 1.3% SiO2
  • Inferred 466MT averaging 46.2% Al2O3and 2.2% SiO2
  • Birsok shares a number of bauxite plateaux with Minim Martap
  • Birsok is located less than 10km from a rail line that runs to the port
  • JVA to be cancelled and Birsok project to be transferred to Canyon

Steven Poulton, Chief Executive of Altus, commented: “Under this deal Altus will receive up to 30M Canyon shares plus a US$1.5/t royalty on our Birsok bauxite project, in return for the termination of the current joint venture agreement and transfer of a 100% interest in Birsok to Canyon. When combined with our existing holding of 8M shares, our combined holding of 38M Canyon shares, would have a notional current market value of approximately £3.9M / C$6.6M / A$7.2M.

“Bauxite is the primary ore of aluminium, a lightweight metal which has substantial applications in the global drive for increased energy-efficiency. The Minim Martap and Birsok projects are potentially very substantial, having high grades, low impurities and being strategically located adjacent to an operating rail line that runs to the coast. We believe that significant potential exists for Canyon to fast track the mining and export of a premium grade bauxite product.

“Our agreement with Canyon further validates our project generator business model, generating returns from exploration, while growing a portfolio of potential high value royalty income streams. We look forward to updating shareholders on this transaction in due course.”

Terms of LoI

Part A: In lieu of the termination of the JVA, Canyon will issue to Altus:

  • 15,000,000 ordinary free trading Canyon shares (the “Initial Shares”)
  • 10,000,000 ordinary escrowed Canyon shares, to be issued 12 months following the Initial Shares and subject to a 12 month voluntary escrow

Part B: In lieu of the transfer of the Birsok project:

  • 5,000,000 ordinary escrowed Canyon shares, to be issued upon the execution of a mining convention on the Minim Martap project and subject to a 12 month voluntary escrow
  • a US$1.50 per tonne royalty on ore mined and sold from the Birsok project

The issue of shares by Canyon to Altus will be subject to final documentation, the termination of the JVA, the transfer of the Birsok project and any regulatory or other approvals as may be required.  Completion of the transaction is expected to occur by the end of this year.

Source: Company Press Release