Canyon Resources Ltd (ASX:CAY) has been granted a trading halt by the ASX ahead of capital raising news.

The halt will remain in place until the beginning of trade on Tuesday, July 23, or when an announcement is made to market, whichever occurs earliest.

Canyon's securities last traded at 18 cents.

READ: Canyon Resources drill results feature 8 metres at 56.7% aluminium oxide

Earlier this month the company obtained further high-grade, quality results form aircore drilling at its Minim Martap Bauxite Project in Cameroon.

Highlights included 8 metres at 56.76% aluminium oxide and 1.63% silicon dioxide, 10 metres at 53.50% aluminium oxide and 2.08% silicon dioxide, and 8 metres at 53.30% aluminium oxide and 1.50% silicon dioxide all from surface.

The Agnes Plateau forms part of the high-grade section of the Minim Martap JORC resource and these results continue to support higher grades of aluminium, lower levels of silica and the potential for deeper mineralisation.

READ: Canyon Resources DSO prospects improved by Cameroon port-rail tendering

At the time, Canyon’s chief geologist Alexander Shaw said: “The most recent drilling results from the Agnes plateau are very pleasing and confirm that Canyon’s drilling may be contributing to the improvement of the scale and grade of the Minim Martap resource.

“A number of holes were stopped in high-grade material due to wet drilling conditions which prevented further penetration using the air-core rig.”