Toubani Resources (ASX:TRE) has attracted a fresh cash injection of $4 million to pave the way for a Definitive Feasibility Study to be completed over the Kobada Gold Project in Mali.
The company says it has received significant support from existing and new sophisticated, professional and institutional investors for a $3.85 million placement comprising the issue of 33.5 million shares at $0.115 each, a 14.8% discount to Toubani’s closing share price of $0.135 on 23 April 2024.
Non-Executive Director Tim Kestell will also contribute to the capital raising, subscribing for an additional 1.3 million shares worth $150,000, subject to shareholder approval.
CEO Phil Russo says the funding enables Toubani to complete the technical work streams necessary to deliver a DFS.
This includes updating the 2.4-million-ounce inventory following highly targeted resource definition drilling, ore reserve studies and completing an increased scale, predominantly oxide and technically simple Kobada DFS.
“We want to deliver a really robust feasibility study that will hopefully show a larger Kobada project producing at low cost given the soft rock nature of the deposit,” Russo tells Mining.com.au.
“Toubani is at an exciting juncture in our development with our recent drilling serving to remind us of the potential at Kobada and we look forward to defining an attractive gold development asset in a market devoid of development assets, particularly those with the attributes of Kobada.”
This boost to the coffers follows recent drill results, as reported earlier this week, that delivered high grades including 19m at 20.6 grams per tonne (g/t) gold from 69m, including 2m at 178g/t.
This has prompted Toubani to investigate the potential to define higher grade zones during the resource update work to complement the bulk mining approach of the broader deposit.
Canaccord Genuity (Australia) and Euroz Hartleys are acting as joint lead managers to the placement, which takes Toubani’s cash on hand to around $5 million.
Write to Angela East at Mining.com.au
Images: Toubani Resources
