Toubani’s Kobada Project Secures A$177m Funding and Keeps Drilling On
Toubani Resources confirms uninterrupted operations at its Kobada Gold Project in Mali despite local fuel and security concerns, while progressing key funding and permitting milestones.
- Kobada drilling activities continue without interruption
- Environmental approval secured and permitting progressing
- Ausenco appointed as EPCM engineer with initial works underway
- Significant funding package includes A$70m equity and US$160m gold stream
- Cash position to reach A$177m upon funding completion
Operational Resilience Amid Regional Challenges
Toubani Resources Limited (ASX, TRE) has provided a reassuring update on its Kobada Gold Project in Mali, confirming that recent reports of fuel supply restrictions and security concerns in Bamako have not impacted its operations. Drilling activities at Kobada continue as planned, with a second reverse circulation drill rig expected to arrive shortly to accelerate exploration efforts. This operational continuity is a positive signal for investors wary of geopolitical risks in West Africa.
Progress on Environmental and Permitting Fronts
Following the recent approval of the Environmental and Social Impact Assessment, Toubani is advancing its permitting activities with ongoing engagement with Malian authorities and stakeholders. The appointment of Ausenco Services Pty Ltd as the EPCM (Engineering, Procurement, and Construction Management) engineer marks a significant step forward, with initial engineering activities already underway and long lead equipment orders placed. These developments suggest the project is steadily moving closer to construction readiness.
Robust Funding Package Secures Financial Position
Financially, Toubani is well positioned to support its development ambitions. The company’s 35% shareholder, Eagle Eye Assets, has reaffirmed its commitment through a substantial A$70 million follow-on equity investment alongside a US$160 million gold streaming agreement. Upon completion of this funding package, Toubani’s cash reserves are expected to total A$177 million, providing a strong buffer to advance project milestones without immediate capital constraints.
Engagement with Malian Authorities Continues
Maintaining good standing with local authorities remains a priority, with senior Toubani executives recently holding meetings with several government ministers to finalize the investment framework for Kobada. This ongoing dialogue is crucial in a region where political and security dynamics can influence project timelines and investor confidence.
Looking Ahead
With drilling intensifying, permitting progressing, and funding secured, Toubani is poised to advance the Kobada Gold Project towards development. However, the company will need to continue navigating the complexities of operating in Mali, balancing operational momentum with external risks.
Bottom Line?
Toubani’s steady progress and strong funding position set the stage for Kobada’s next development phase, but regional risks remain a watchpoint.
Questions in the middle?
- When will the announced funding package be fully completed and drawn down?
- How might ongoing security and fuel supply issues in Mali affect longer-term project timelines?
- What are the next key milestones and timelines for Kobada’s construction and production phases?
