Probably time for a new thread, after the goal posts were changed yet again to reflect the "New Mining Code" and we now sit in limbo awaiting the issuance of the ML. Let's open the discussions and bring some positivity back into the threads of Canyon, now the 7c options have expired and conversions have been completed.
So Where To From Here? What news can we expect over the next 4 months before the Xmas Holiday period? And beyond?
This is potentially what newsflow I believe will follow:
Drill Results Due - I believe these are due early October. What does this mean? It will update the size of the resource and should reflect directly into the following:
Updated BFS/DFS - The facts and figures from the drill results has to reflect into an updated BFS, which will then define the DFS. For those not aware of the importance of a Definitive Feasibility Study (DFS), it is generally required to obtain the finance to fund the build of the mine. Here is a brief explanation of the importance of a DFS:
"The Definitive Feasibility Study (DFS) is the cornerstone of project development in the mining industry, embodying the most comprehensive and scrupulous analysis conducted before a financial commitment to develop a mining project is made. It is the culmination of all prior study stages, delivering a final verdict on the technical and economic viability of a project. A DFS is a beacon for investors and stakeholders, shedding light on the granular details of a project's potential. It delves into meticulous assessments of geological data, reserves, mining methods, processing technologies, infrastructure requirements, environmental impacts, legal obligations, and market analyses. The study provides the final detailed capital and operating cost estimates with an accuracy that typically falls within a range of plus or minus 10-15%".
The latest Quarterly (July 30 2024) indicated the DFS will be streamlined (Extract Copied below):
• Early-stage detailed engineering studies for flagship Minim Martap Bauxite Project progressing as planned to support the revised Definitive Feasibility Study (DFS). I am hoping we receive this next quarter.
Updated Investor Presentation - The previous Investor Presentation was dated June 2022 after the previous BFS was released and is now outdated. An updated BFS/DFS will more than likely mean we receive an updated Investor Presentation to promote where we stand now that the Mining Convention has been signed.
Marketing - I would like to think, an updated Investor Presentation will more than likely incorporate and commence some minor marketing to bring in new investors. The major marketing you would think will come after the ML has been issued.
Binding Contract For Rail and Port Access:
I'm not convinced we will see newsflow regarding binding agreements for Port and Rail access this year, (But I'm hoping), and I can bet my bottom dollar, EEA and the board will be pushing this agenda hard to finalise the necessity access and put pressure on the Cameroon Govt to issue the Mining License.
(Taken from the Annual Report (Dated 28 September 2023) in relation to EEA's additional 500M Options:
The exercise of the New Options will be subject to:
* the grant of the Mining Licence for the Minim Martap Project ("Project"); and
* a binding contract for port access and rail transportation of product on terms relevant to the Project and customary in the
Central African market being executed by the Company and counterparties.
Offtake Agreements:I would think Offtake Agreements discussions will be advanced in due course once the above has occurred. Having said that, will we see some MOU's signed prior to the ML being issued? Or will they take the form of some type of Financing Agreement? I'll take a line out of Pika's vocabulary and say, "It is possible and I won't rule it out".
Finance
I would think finance will come at some point after the DFS has been released and would be pivotal for the ML to be issued. In what timeframe is anybody's guess, but I would like to think, it would be a high priority to the board.
My Overview
I believe we have restarted the processes that were discussed years ago when PG was in charge. The difference now is we have some commitment from the Cameroon Govt to commit to the process and they've signed the Mining Convention which is a major milestone for us all. Plus we have EEA as our major SH who in my opinion, have been monumental in getting us to where we are now and will play a major part, moving forward.
I believe we will now see more regular and market sensitive newsflow, that will/should derisk our investments and see the share price move in the right direction upwards. I'm guessing the selling ATM is related to the latest option conversions and should end in the not too distant future. I'm looking forward to October and beyond and IMHO, the excitement is yet to come.
This is just my own humble opinions of where we go from here, based on my research and last 13 years investing here and not to be considered as financial advice.
GLTAH
Peace Fishies
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