• A2MP Investments FZCO, majority shareholder of Canyon Resources, launches a takeover bid
• Offer price set at A$0.05 per share, fully funded from existing cash reserves
• Offer subject to a 75% minimum acceptance condition and a 'no prescribed occurrences' condition
• Bidder cites market changes and increased project costs as reasons for the offer
• Offer implies an equity value of A$103m and enterprise value of A$188m for Canyon Resources

A2MP Investments FZCO, a company owned by Eagle Eye Asset Holdings Pte. Ltd. and FEDA Mining Investments Limited, has launched an off-market takeover bid for all outstanding ordinary shares in Canyon Resources Limited (ASX:CAY) that it does not already own or control. The offer price is A$0.05 per share, fully funded from the bidder's existing cash reserves. The offer is subject to a 75% minimum acceptance condition and a customary 'no prescribed occurrences' condition. A2MP, which holds a 55.56% interest in Canyon Resources, cites market changes and increased project costs for the Minim Martap Bauxite Project as reasons for the offer. The bidder considers the project's funding requirements have increased, and the project may no longer be viable in its current shape and with available funding. The offer implies an equity value of A$103 million and an enterprise value of approximately A$188 million for Canyon Resources, including the assumption of the drawn AFG Facility.

Offer price: A$0.05 per share, fully funded from existing cash reserves

The bidder intends to pursue the delisting of Canyon Resources and review the Minim Martap Bauxite Project, which may result in a decision not to proceed with the project at its currently projected production volumes.