Toubani secures $257.7mn package to develop Mali’s Kobada gold mine

About this update from Toubani Resources Limited Registered Shs

Toubani Resources has secured an approximately AUD395mn ( $257.7mn ) funding package to develop the Kobada Gold Project in Mali , supported by a $160mn gold stream, an AUD125mn ( $81.6mn ) equity placement, and AUD26mn ( $17mn ) from option exercises. According to the company’s release to the ASX, the financing includes a binding term sheet for an 11.1% gold stream with major shareholder Eagle Eye Asset Holdings (EEA), a multi-tranche placement priced at AUD0.40 ( $0.26 ) per share, and accelerated option exercises by EEA. The placement includes an AUD45mn ( $29.4mn ) commitment from EEA, subject to shareholder and Foreign Investment Review Board approval. Upon completion of the option exercise and EEA’s placement tranche, EEA would hold about 35% of Toubani. The company’s pro-forma market capitalisation at the offer price is AUD297mn ( $194mn ). Toubani expects to make a final investment decision in calendar year 2025, with long-lead commitments shortly after and first gold production targeted for the third quarter of 2027. Under the gold stream, EEA will have the right to purchase 11.1% of mine output, reduced to 5.55% if only half of the facility is drawn,  at 20% of spot prices, secured by first-ranking security over Toubani group assets. This security would become subordinate to any future senior debt. Toubani retains a 90-day drawdown option following shareholder approval, subject to a 2.5% fee whether or not funds are drawn, and a two-year window from plant commissioning to buy back up to 75% of the stream, depending on an internal rate of return threshold. Conditions for the agreement include a minimum AUD100mn ( $65.3mn ) equity raise, approval from non-associated shareholders under ASX Listing Rule 10.1, and necessary Malian government consents. A definitive feasibility study for Kobada outlines initial capital expenditure of $216mn , average annual output of 162koz over the first seven years, and an all-in sustaining cost of $1,175 /oz (rising to $1,317 /oz in a higher gold price scenario). The project is forecast to deliver a post-tax net present value (8% discount rate) of $500mn to $951mn and an internal rate of return of 50% to 79%. Funds from the package, together with AUD26mn ( $17mn ) in cash as of September 30, will be allocated to project capital expenditure, exploration and growth ( $13mn ), corporate and working capital ( $45mn ), and transaction costs. “Today’s funding package marks a company-defining milestone for Toubani Resources , enabling us to advance the Kobada Gold Project and move decisively toward becoming the next West African gold producer,” Toubani Resources Chief Executive Officer Phil Russo said in a company statement. “Successfully de-risking Kobada to this pivotal point is the culmination of several years of disciplined execution against our strategy.” © 2025 bne IntelliNews, source Magazine

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