Toubani Raises A$395M, Targets 162koz Annual Gold Output by 2027

Funding Package Secures Kobada’s Future

Toubani Resources has announced a landmark A$395 million funding package to finance the construction of the Kobada Gold Project in Mali, marking a pivotal step in its evolution from developer to producer. The package combines a US$160 million gold streaming agreement with major shareholder Eagle Eye Asset Holdings (EEA), an accelerated exercise of options raising A$26 million, and a multi-tranche equity placement raising A$125 million from institutional investors.

This comprehensive funding solution not only underpins the project's capital requirements but also signals strong investor confidence in Kobada’s potential. The equity placement is priced at A$0.40 per share, a modest discount to recent trading levels, and includes commitments from both existing and new shareholders, with EEA poised to increase its stake to approximately 35%.

Robust Project Economics and Development Plans

The Kobada Gold Project boasts compelling economics highlighted in its Definitive Feasibility Study. With an initial capital expenditure of US$216 million, the project promises low capital intensity relative to its scale. Operating costs are competitive, with an all-in sustaining cost estimated at US$1,175 to US$1,317 per ounce, driven by favourable geology including low strip ratios and oxide-dominant ore.

Production is forecast at an average of 162,000 ounces annually over the first seven years, focusing on high-margin oxide ore. The project’s post-tax net present value (NPV) ranges between US$500 million and US$951 million depending on gold price assumptions, with an internal rate of return (IRR) between 50% and 79%, underscoring its attractive financial profile.

Strategic Partnership with Eagle Eye Asset Holdings

EEA’s involvement is central to the funding package, providing both the gold streaming facility and equity participation. The gold stream allows EEA to purchase up to 11.1% of gold produced at a discounted price, while Toubani retains buyback rights to reduce the stream if desired. This arrangement balances upfront capital needs with future operational flexibility.

EEA’s experience in mining investments across Africa, led by CEO Pramod Prusty, adds strategic value beyond capital. Their increased ownership stake post-funding reflects a deepening partnership aligned with Toubani’s growth ambitions.

Next Steps and Market Implications

Toubani aims to make its final investment decision within calendar year 2025, with first production targeted for Q3 2027. The company plans to commence long-lead procurement and development activities imminently, supported by existing cash reserves and the new funding.

This fully funded status positions Toubani for a potential re-rating as it transitions into a producing gold company. Investors will be watching closely as shareholder and regulatory approvals progress, and as the company executes on its development timeline.