Canyon Resources (ASX:CAY) is poised to acquire a 9.1% strategic stake in railway operator CAMRAIL SA via its subsidiary, Camalco Cameroon, according to a Friday filing with the Australian bourse.
Camalco bought a 3.8% equity interest in CAMRAIL from Societe d'Exploitation des Bois du Cameroun for an upfront cash payment of roughly AU$1.4 million.
Separately, Camalco will acquire a 5.3% equity interest in CAMRAIL from Total Cameroon for an upfront cash payment of about AU$2 million, per the filing. This transaction is subject to the approval by the Apex committee of Total Cameroon which is expected by the end of March.
Both deals total AU$3.4 million, which will be paid using Canyon Resources' existing cash reserves.
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