Canyon Resources' (ASX:CAY) unit, Camalco Cameroon, received a formal notice from AFG Bank Cameroon, informing that it is suspending all further disbursements under the loan facility until a full review of the development schedule, financial model, and other financial inputs for the Minim Martap bauxite project in Cameroon, as well as a site visit are completed to the satisfaction of the lenders, according to a Monday Australian bourse filing.
The company withdrew its previously announced development schedule, including the target of first shipment in the December quarter, pending certainty regarding funding and transhipping arrangements. It could not achieve the first shipment due to the suspension of additional debt drawdown capacity by AFG, per the filing.
It added that the takeover bid by A2MP Investments FZCO has materially constrained its access to funding, including through ASX Listing Rule restrictions on equity capital raising during a bid period.
Mark Hohnen informed the board that he reconsidered his retirement position and will not be stepping down as non-executive chairman until the current A2MP Investments takeover bid process is completed, per the filing.
Canyon Resources' shares fell nearly 3% in recent trading on Monday.