Toubani Resources (ASX:TRE) has secured a $395 million funding package to become the next West African gold producer via its Kobada Gold Project in Mali.
The funding package comprises $242 million via a 11.1% gold stream with existing shareholders Eagle Eye Asset Holdings, $26 million via an exercise of existing options and a $125 million multi-tranche placement.
Under the placement, shares will be issued at $0.40 per share, representing a 5.9% discount to the company’s last traded price of $0.425.
Toubani, which has a market capitalisation of $149.17 million, will use the funds, in conjunction with its existing $26 million cash at hand, towards Kobada’s development capex, exploration and growth.
The funds will also be used for corporate costs and working capital.
Managing Director Phil Russo says the funding package marks a company-defining milestone for Toubani.
“Successfully de-risking Kobada to this pivotal point is the culmination of several years of disciplined execution against our strategy,” Russo says.
“The achievement is underpinned by the strength of the Kobada Project and the invaluable support of our partners – in particular, Eagle Eye Asset Holdings whom I wish to acknowledge. They share our conviction in the significant value of Kobada and have played a fundamental role in unlocking this outcome in Mali today.”
Russo adds that the company believes Kobada is a project of genuine regional significance – “technically simple, oxide-dominant, and highly compelling”.
In October 2024, Toubani completed a Definitive Feasibility Study for the Kobada Gold Project, which outlined an initial development capex of US$216 million ($329.47 million) and an all-in sustaining cost of US$1,175 per ounce.
The project has a post-tax net present value of US$500 million with an internal rate of return of 50%.
Toubani Resources is an explorer and developer focused on gold in West Africa’s Birimian Greenstone Belt in southern Mali.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
