Toubani Secures Mali Partnership and $29M Boost for Kobada Gold Project

A Milestone Fiscal Agreement with Mali

Toubani Resources Limited (ASX: TRE) has taken a significant step forward in developing its Kobada Gold Project in southern Mali by securing a fiscal framework agreement with the State of Mali under the country’s 2023 mining code. This agreement replaces the previous 2012 mining code governance and establishes a clear and stable regulatory environment, a critical factor for advancing the project toward production.

The equity structure agreed upon allocates 65% ownership to Toubani through a fully owned subsidiary and 35% to the State of Mali, which includes a 10% unpaid free carried interest, a 20% paid interest, and an additional 5% interest reserved for national investors. This partnership model aligns the interests of both parties in the long-term success of Kobada, marking a notable shift from previous arrangements in Mali’s mining sector.

Robust Project Economics Confirmed

Following the fiscal agreement, Toubani updated its Definitive Feasibility Study (DFS) to reflect the new mining code’s terms. The DFS update reaffirms Kobada’s status as a premier oxide gold project with a simple, free-dig, and open-pittable resource. Key financial metrics remain strong, with a projected initial mine life of 9.2 years, average annual production of approximately 53,800 ounces of gold, and attractive pre- and post-tax net present values and internal rates of return under conservative gold price scenarios.

The project’s technical design remains consistent with the October 2024 DFS, underscoring the robustness of Kobada’s resource base and processing approach. Importantly, the updated fiscal terms include a 2% reduction in royalty rates and a corporate tax rate of 25% for the first five years, enhancing the project’s economic profile.

Advancing Permitting and Community Engagement

Toubani continues to progress its Environmental and Social Impact Assessment (ESIA), with specialist field studies completed and regulatory approvals anticipated by the third quarter of 2025. The company’s proactive engagement with local communities and government officials demonstrates its commitment to sustainable development and social license to operate.

Regular consultations and information sessions have been held in villages near the project site, while the Ministry of Environment’s recent site visit signals strong governmental support. These efforts are critical to securing the necessary permits and maintaining momentum toward a Final Investment Decision (FID) later this year.

Strategic Capital Injection and Financing Progress

Post-quarter, Toubani announced a transformational A$29 million placement, led by A2MP Investments DMCC, a subsidiary of Eagle Eye Asset Holdings Pte Ltd, supported by the African Export-Import Bank. This strategic investment, representing an 18% pro-forma shareholding in Toubani, is subject to shareholder approval but signals strong institutional confidence in Kobada’s potential.

In addition to equity, A2MP has provided a non-binding commitment for a US$160 million debt facility, positioning Toubani well to secure comprehensive project financing. The company has invited select financiers into a data room and is conducting due diligence to identify the optimal funding structure ahead of the FID.

Looking Ahead

With regulatory clarity, robust project economics, advancing permitting, and strengthened financial backing, Toubani is well positioned to unlock the inherent value of the Kobada Gold Project. The upcoming months will be critical as the company seeks shareholder approval for the strategic investment, finalizes implementation documentation with the State of Mali, and moves toward a definitive investment decision.