Toubani Secures $395M Financing, Starts Kobada Construction in Q1 2026
Toubani Resources is poised to begin construction on its Kobada Gold Project in Mali after securing key environmental approvals and a substantial financing package. The company is advancing rapidly towards becoming a major gold producer in Africa.
- Environmental and social permits approved, final environmental permit imminent
- Major contracts awarded including logistics and bulk earthworks
- Long lead equipment ordered and fabrication underway
- $395 million financing package largely secured, pending final shareholder approval
- Key project roles filled and drilling activities ongoing
Project Momentum Builds
Toubani Resources Limited (ASX – TRE) has reported significant progress on its Kobada Gold Project in southern Mali, signalling a rapid transition from development to construction. With environmental and social impact assessments, water extraction permits, and resettlement action plans approved by Malian authorities, the company is on track to receive the final environmental permit that will greenlight site clearing and earthworks.
The company’s Managing Director, Phil Russo, emphasised the diligent multi-faceted approach taken by the team, highlighting the alignment of permitting, financing, and engineering milestones. “We are on course to deliver a significant gold mine for all our stakeholders and create the next great gold mine for Mali,” Russo said, underscoring the project’s strategic importance in Africa’s gold mining landscape.
Engineering and Contracting Advances
Ausenco, the lead engineering contractor, has advanced detailed engineering and procurement activities, with key long lead items such as the ball mill, mineral sizer, and CIL tank platework already ordered and progressing through fabrication. The ball mill components have been cast, and structural steel is being prepared for shipment, aligning with the construction schedule.
Major contracts have been awarded, including logistics partner Antrak and bulk earthworks contractor, with mining contractor tenders in the final evaluation stages. Power plant tenders are also nearing finalisation to ensure power availability ahead of commissioning. These developments reflect a well-coordinated effort to mobilise resources and personnel ahead of construction commencement in Q1 2026.
Financing Secured, Final Approvals Pending
The Kobada Gold Project’s financing package, valued at A$395 million, is largely in place following shareholder approval of the initial tranches. The upcoming extraordinary general meeting on 13 February 2026 will consider the final tranche and gold streaming agreements with major shareholder Eagle Eye Asset Holdings. Additionally, Toubani is in advanced discussions with potential debt providers to optimise the funding mix, aiming to secure senior debt to complement the equity and streaming arrangements.
This robust financial backing provides a solid foundation for the project’s construction phase and future operations, mitigating funding risks that often delay mining developments.
Operational Readiness and Workforce Expansion
On the ground, Toubani is actively drilling near-surface extensions to the mineral resource and conducting site surveys in preparation for earthworks. The company has filled all key project roles in both Mali and Perth, including construction, finance, and environmental management positions, ensuring experienced leadership is in place to manage the complex development process.
The hiring phase continues, with a focus on assembling a skilled workforce capable of meeting the project’s ambitious timeline. Early development works have proceeded without interruption, reflecting operational stability despite the challenging geopolitical environment in Mali.
Looking Ahead
With construction set to commence imminently, Toubani Resources is positioning Kobada as a significant new gold producer in Africa. The project’s oxide-dominant resource base and well-advanced infrastructure plans provide a promising outlook for production and value creation. However, the company’s ability to navigate final regulatory approvals and secure optimal financing terms will be critical to maintaining momentum.
Bottom Line?
As Toubani moves swiftly into construction, investors will watch closely for final financing approvals and early operational execution in Mali.
Questions in the middle?
- Will the final tranche of financing and gold streaming agreements secure shareholder approval at the upcoming EGM?
- How will geopolitical and regulatory risks in Mali impact the construction timeline and operational stability?
- What are the prospects for securing senior debt to optimise the project’s funding structure?
