Toubani Resources (ASX:TRE) has raised $10 million through receiving binding commitments for a two-tranche placement, which will help advance the Kobada Gold Project in Mali.
Tranche one of the placement, raising $7.2 million, comprises the issue of 42.2 million shares at $0.17 per new share. Tranche one is expected to settle on 27 August 2024, with shares expected to be issued the following day.
Under the second tranche, 16.6 million shares, subject to shareholder approval, will be issued, aimed at raising $2.8 million. The general meeting to obtain shareholder approval is expected to take place in October 2024.
The offer price of $0.17 represents a 5.6% discount to the last traded price of $0.18 and a 10.1% discount to the 10-day volume weighted average price.
Canaccord Genuity and Wallabi Group acted as joint lead managers and bookrunners to the placement, while Euroz Hartleys acted as co-manager to the placement.
Toubani Resources, which has a market capitalisation of $30.39 million, says the funds will be used to complete the Kobada Definitive Feasibility Study (DFS) to define the project as one of the “largest” oxide development projects in West Africa.
Funds will also be used for post DFS activities, including finalising outstanding in-country agreements, updating permitting, as well as advancing environmental and social activities towards Kobada achieving shovel-ready status.
Toubani also plans to pursue reverse circulation and diamond drilling to test high-priority targets and depth potential within the Kobada Project.
Managing Director Phil Russo says the company is well positioned to advance its “compelling” West African gold development project.
“We are humbled by the support received from existing and new shareholders as we welcome several new high-quality institutions to Toubani,” Russo says.
“Toubani’s dual-track strategy of advancing Kobada to shovel-ready status while pursuing resource growth opportunities offers an exciting future for the company.”
The company notes that Australian fund manager Paradice committed to subscribe for new shares in the placement, resulting in a pro-forma holding of 9.9% in Toubani, on completion of the offer.
Toubani Resources is a gold-focused developer that is advancing Africa’s next large gold development project with its oxide-dominant Kobada Gold Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
