CAMEROON Law and Practice Contributed by: Lynda Amadagana, Elise Ngo Nyobe, Cecile Bella and Kevin Djomgoue, Amadagana & Partners
• the agreement between the government of the Republic of Cameroon and the govern - ment of the Republic of Italy of 12 June 1999 on the reciprocal promotion and protection of investments; • the agreement between the government of the Republic of Cameroon and the govern - ment of the Republic of Türkiye of 24 April 2012 on the reciprocal promotion and protec - tion of investments; • the agreement between the government of the Republic of Cameroon and the govern - ment of Great Britain and Northern Ireland of June 1982 on the reciprocal promotion and protection of investments; • the agreement between the government of the Republic of Cameroon and the govern - ment of the Belgo–Luxembourg Economic Union of 27 March 1980 on the reciprocal promotion and protection of investments; • the agreement between the government of the Republic of Cameroon and the govern - ment of the Federal Republic of Germany on the reciprocal promotion and protection of investments; and • the agreement between the government of the Republic of Cameroon and the USA of 1 December 2003 on the reciprocal promotion and protection of investments. 5.4 Sources of Finance for Exploration, Development and Mining Exploration activities in Cameroon are generally financed by the mining operators’ equity at the exploration phase. These funds are generally derived either from the cash flow of the mining operator’s parent company, from the cash flow of the mining operator, or from loans granted by the mining operators to local or foreign credit institutions.
Exploitation activities in Cameroon are generally financed by international lenders specialised in the mining sector. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining The roles of the international and national securi - ties markets are: • to mobilise the savings needed to finance the exploration, exploitation and development of mining activities; and • to attract potential investors to finance mining projects. 5.6 Security over Mining Tenements and Related Assets In Cameroon, mining tenements are granted by the State. To secure financing for exploration and development, companies often use the fol - lowing methods. Pledging of Tenements Tenements can be pledged to lenders as secu - rity. However, this may require specific approvals from the Mining Authority. Fixed Charges Over Mining Equipment Specific mining equipment can be subject to a fixed charge, giving the lender a priority interest in those assets. Floating Charges Over Inventory and Accounts Receivable A floating charge can be created over a com - pany’s inventory and accounts receivable, pro - viding flexibility but lower priority than fixed charges.
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