Toubani Resources (ASX:TRE) has executed binding documentation for a US$208 million ($300 million) funding package to complete the construction of the Kobada Gold Mine in Mali, West Africa.
The package comprises a US$160 million gold stream and US$48 million equity investment from major shareholder Eagle Eye Asset.
First drawdown of the gold stream is expected in Q3 2026, with first gold production targeted for Q3 2027.
Toubani has also secured a term sheet for an additional US$40 million senior secured facility from a syndicate led by AFG Bank.
Managing Director Phil Russo says the company is ‘pleased’ to have completed and executed the binding funding package for the development of the Kobada Gold Mine.
“The combination of gold stream and strategic equity financing provides the funding certainty and financial flexibility required to deliver Kobada on our accelerated timeline,” Russo says.
“The additional senior secured facility further strengthens the company’s financial position and enhances our ability to achieve this milestone.”
Russo reveals that over 500 personnel are already on-site and over 60% of the project’s capex has been committed.
Key contractors and critical materials have also been mobilised to site, with major construction activities at the process plant commencing.
The gold stream entitles Eagle Eye Asset to 11.1% of gold produced at Kobada at a price equal to 20% of the prevailing spot gold price.
Toubani retains a 75% buyback right available up to two years post-commissioning.
Meanwhile, the strategic equity financing comprises a fully underwritten 1 for 3.27 accelerated non-renounceable entitlement offer to raise approximately US$48 million before costs at $0.30 per share.
Eagle Eye Asset, which holds approximately 34.2% of Toubani, will maintain its pro-rata interest.
Part of the proceeds will fund US$188 million of remaining capex, while the rest are earmarked for the following: US$7 million for exploration and growth, US$45 million for working capital and recoverable value-added tax payments, and US$20 million for corporate costs.
The equity raising was fully underwritten by Canaccord Genuity Australia, which also serves as lead manager. Helikon Investments acted as partial sub-underwriter for the retail entitlement offer.
Toubani Resources is a developer focused on advancing gold opportunities in Africa, particularly with its Kobada Gold Project.
Write to Paula Fabe at Mining.com.au
Images: Toubani Resources
