Africa Minerals and Metals Processing Platform (A2MP), the principal shareholder of Canyon Resources, has cast doubt on the financial viability of the Minim-Martap bauxite project in Cameroon.
The group stated that expected cash flows from the operation may not be sufficient to service the $140 million (82 billion FCFA) loan facility provided by the African Guarantee Fund (AGF).
The assessment highlights growing scrutiny over the execution risks associated with large-scale mineral development in the region.
The concern centers on the project's ability to generate adequate revenue to meet debt obligations.
A2MP's position suggests that initial financial models may have overestimated production efficiency or market conditions.
For investors and lenders, this signals a potential restructuring of the project's financing or a delay in commercial operations.