Toubani Resources (ASX:TRE) is continuing to advance towards a final investment decision (FID) for the Kobada Gold Project in Mali, following an agreement with the State of Mali under the 2023 mining code.
The agreement with the State of Mali has helped Toubani secure a development pathway for Kobada and is also considered a key step towards necessary regulatory certainty for the project.
As such, a select group of project financing parties have now entered a data room and have begun due diligence, as part of an initial process to begin development work.
Toubani, which has a market capitalisation of $48 million, says an environmental and social impact assessment workstream is continuing to advance and is on track with approval anticipated in Q3 2025.
As part of the approval process, Mali’s Ministry of Environment will visit the Kobada Gold Project site in early April 2025.
Toubani has also completed planning for early engineering activities and drilling campaigns at the Kobada Project.
Under the agreement with the State of Mali, Toubani will share an equity interest in Kobada, consisting of 65% for Toubani through its wholly owned subsidiary Toubani Resources Mali and 35% for the State of Mali. The State of Mali’s equity interest comprises 10% unpaid free carried interest, 20% additional paid interest, and 5% paid interest for national investors.
Following the agreement, a transfer of the Kobada mining licence to a new joint operating entity named Mines de Kobada is expected to occur in a timely manner.
Toubani says the formalisation of the joint operating entity will mark a key de-risking event for the project’s advancement.
Meanwhile, the company has updated the Definitive Feasibility Study — completed in October 2024 — following the adoption of the 2023 mining code.
Based on a US$3,000 per ounce gold price, the project is expected to have a post-tax net present value of $951 million and an internal rate of return of 78.9%.
Once the first gold production is achieved, the study outlines a post-tax payback period of 1.25 years.
Managing Director Phil Russo says the applicable fiscal regime underpins an updated study that delivers a projected operating cashflow of over US$220 million per year at the current spot gold price.
“The structuring of our partnership with Mali ensures interests are aligned among all stakeholders, positioning Kobada and Toubani for long-term success in Mali,” Russo says.
“With this foundation in place and a clear and certain pathway forward established, we are accelerating our project readiness workstreams, including advancing our ESIA and project financing activities which remain on schedule, as we move toward a final investment decision later this year.
“For Toubani, securing and maintaining a strong social licence to operate in Mali is paramount. Our commitment to sustainable development and our deep-rooted relationships in the region further reinforce our confidence in unlocking Kobada’s full potential.”
Toubani Resources is focused on developing West Africa’s next gold mine with its oxide-dominant Kobada Gold Project.
The Kobada Gold Project is located in southern Mali, Africa. According to the World Gold Council, Mali is the second largest gold producer in Africa, accounting for 105,000 tonnes as of 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
