A2MP Investments disputes Canyon Resources valuation in takeover bid

A2MP Investments is challenging the valuation of Canyon Resources as it seeks to complete a takeover of the Australian company. A2MP, which is 97.3% owned by Singapore-based Eagle Eye Asset Holdings linked to Gagan Gupta, currently controls over 55% of Canyon Resources. To achieve full ownership, A2MP must reach a 90% capital threshold, but the bid faces opposition from Canyon’s board and regulatory intervention from Australia’s Takeovers Panel.

The dispute centers on the valuation of the Minim-Martap bauxite mine in Cameroon, Canyon’s primary asset. BDO Corporate Finance Australia valued Canyon shares between A$0.14 and A$0.446, whereas A2MP’s offer stands at A$0.05 per share. BDO’s valuation relies heavily on Minim-Martap resources that are not included in the current modeled production scenario, accounting for approximately 95.9% of its total valuation. A2MP has criticized the assumptions used in this assessment.

The takeover process is set to expire on September 21, 2026, unless extended. The ongoing conflict and financing difficulties for the Minim-Martap project may delay the development of what is intended to be Cameroon’s first bauxite mine.