Toubani Resources (ASX:TRE) has entered into a binding commitment letter with a group of lenders represented by Coris Bank International Mali to fund the construction of the Kobada Gold Mine.
The agreement is subject to conditions, including local government approvals, under a secured project finance facility agreement with Coris Bank for US$73.3 million ($101.52 million).
Toubani is currently advancing definitive documentation for the US$10.2 million mezzanine facility, which is ancillary to the Coris Senior Debt Facility.
The company is also finalising agreements with Eagle Eye Asset Holdings for the gold stream facility.
Both agreements are expected to optimise the various components of the funding plan for constructing Kobada.
Managing Director Phil Russo says financing initiatives are continuing to advance on schedule, with remaining documentation to be finalised shortly.
“We remain focused on our vision of developing the next major gold mine in Mali for the benefit of all of our stakeholders,” Russo says.
“To that end, the strong progress being achieved by our construction team at Kobada has been exceptional, positioning us for an exciting phase as we move closer to becoming West Africa’s newest gold producer.”
Toubani Resources is an exploration and development company focused on advancing the Kobada Gold Project in Mali, which has a resource of 2.2 million ounces of gold.
Write to Maddison Elliott at Mining.com.au
Images: Toubani Resources
