Canyon tells shareholders to reject A2MP offer

An independent board convened by Canyon Resources to assess a takeover bid for the company has urged shareholders to reject the deal, after it was deemed “not fair or reasonable”. 

Canyon released a target statement today, advising shareholders to reject the offer by A2MP – majority owned by India’s Gupta family – of 5c per share it doesn’t already own in the company. 

A2MP already owns 55.56 per cent of Canyon and lobbed its offer for Canyon last month at a significant discount to the company’s recent trading prices. 

In doing so, A2MP alleged the ASX-listed, Cameroon focused bauxite aspirant was trading at values higher than it was worth. 

But an independent panel led by Canyon chairman Mark Hohnen, which excluded representatives with ties to A2MP, has today hit out at those claims.

The panel claimed the offer materially undervalued Canyon, based of independent analysis by BDO which determined the takeover aspirant’s offer was not fair or reasonable. 

A2MP had claimed that the offer reflected the challenging set of circumstances Canyon faced in bringing its flagship Minim Martap project to production, and financing difficulties.

The firm said in its initial bidder’s statement that the market for the project had changed substantially since a definitive feasibility study was completed in September 2025.

“The bidder considers that the DFS needs to be updated to include a lower bauxite premium, increased freight costs, higher levies and other charges, and to have regard to general inflation, fuel costs and other changes that will increase capital expenditure required for necessary logistics solutions,” it said.

“As a result, the bidder considers the Minim Martap bauxite project’s funding requirements have increased and that the project may no longer be viable in its current shape and with available funding.”

Canyon hit back at that assertion. 

“A2MP’s claims regarding the Minim Martap project are unsubstantiated,” it said. 

“Canyon continues to pursue credible funding alternatives to advance the Minim Martap project.”

The company urged its shareholders to reject the A2MP offer.

A2MP’s is currently building an integrated bauxite-to-aluminium value chain in Cameroon, including an alumina refinery and aluminium smelting capacity, and has previously stated Minim Martap would be complementary to that plan. 

Its majority owner, Gupta family office Eagle Eye Asset Holdings, has substantial business interests in Africa.

The offer by A2MP was separately referred to the Takeovers Panel by minority holder Jeremy Raper – a prominent east coast investor.