Toubani Resources (ASX:TRE) has opened the retail component of its fully underwritten entitlement offer, seeking to raise up to approximately $70 million before costs.
The accelerated non-renounceable pro-rata offer allows eligible shareholders to subscribe for one new Toubani share for every 3.27 shares held at an issue price of $0.30.
The company announced the raise on 13 July and conducted its institutional component over 13–14 July, with the results released the following day. Toubani lodged the retail offer booklet with the Australian Securities Exchange on 20 July.
Canaccord Genuity (Australia) (TSX:CF) is acting as underwriter and lead manager, subject to the terms of the agreement.
Retail shareholders are eligible to participate if they held shares at 7pm (Sydney time) on 15 July and have a registered address in Australia or New Zealand. Certain institutional shareholders in Canada (British Columbia and Ontario provinces only), Hong Kong, Mauritius, Singapore, the United Arab Emirates (excluding financial zones), the UK, and EU countries other than Austria may also qualify.
Toubani says it did not extend the offer to shareholders in other jurisdictions because of the legal and regulatory requirements involved, relative to the number and value of affected holdings.
Canaccord has been appointed to arrange the sale of shares that would otherwise have been available to ineligible retail shareholders. Any proceeds remaining after brokerage and other costs will be distributed to those shareholders, although Toubani says a return is not guaranteed.
The Australian Securities and Investments Commission approved Canaccord’s appointment as nominee under section 615 of the Corporations Act 2001 (Cth).
Toubani is developing the Kobada Gold Project in southern Mali. Kobada hosts mineral resources of 2.2 million ounces of gold across a 4.5km strike length, with the company describing the deposit as predominantly oxide and amenable to open-pit mining.
Toubani Resources is an exploration and development company focused on gold projects in West Africa.
Write to France Pinzon at Mining.com.au
Images: Toubani Resources
