Toubani Resources has landed a credit-approved term sheet from Coris Bank for more than US$80 million in project financing, marking a significant step forward for its Kobada Gold Project in Mali.
- US$73.3 million senior secured debt facility at 10% interest
- US$10.2 million mezzanine facility with production-linked repayments
- Facilities to replace half of previously announced EEA Gold Stream
- Financing subject to Mali government approvals and customary conditions
- Coris Bank consortium experienced in West African mining finance
A Major Financing Milestone
Toubani Resources has taken a decisive stride towards developing its Kobada Gold Project in Mali by securing a credit-approved term sheet from Coris Bank International for over US$80 million in funding. This package includes a US$73.3 million senior secured project finance facility and a US$10.2 million mezzanine facility, both denominated in West African CFA francs but converted here for clarity.
The senior debt facility carries a 10% annual interest rate and is structured with a repayment schedule commencing 18 months after the first drawdown, spanning five years. The mezzanine facility, meanwhile, features a variable repayment component linked to gold production, reflecting a more flexible approach aligned with project output.
Replacing Previous Financing and Strengthening the Capital Structure
These new facilities are set to replace 50% of the previously announced EEA Gold Stream financing, effectively diversifying Toubani’s funding sources and potentially improving the project's financial resilience. Subject to final documentation and government approvals in Mali, the combined non-equity funding for Kobada will total approximately US$164 million, blending senior debt, mezzanine finance, and gold streaming arrangements.
Coris Bank’s involvement is notable given its strong track record in financing mining projects across West Africa, including partnerships with other ASX-listed gold producers such as West African Resources and Orezone Gold Corporation. This regional expertise is likely to be a critical asset as Toubani navigates the complexities of project development in Mali.
Advancing Towards Final Investment Decision
With engineering, financing, and permitting milestones progressing rapidly, Toubani is positioning Kobada as one of the lowest-cost gold projects in the region. Managing Director Phil Russo highlighted the strong third-party support underpinning the project’s financing and emphasised the company’s focus on sustaining momentum towards a final investment decision.
While the term sheet is credit approved, the financing remains subject to definitive documentation, customary conditions precedent, and regulatory approvals from the Malian government. These steps are critical to reaching financial close and unlocking the funds necessary for project construction.
Looking Ahead
The indicative timeline suggests that definitive documentation and satisfaction of conditions could occur in the first half of 2026, with potential drawdowns by mid-year. This timeline, however, remains flexible and dependent on regulatory and contractual milestones.
Overall, this financing package marks a significant vote of confidence in Toubani’s Kobada Gold Project and its potential to become a key player in West Africa’s gold mining landscape.
Bottom Line?
Toubani’s new financing deal with Coris Bank sets the stage for a pivotal year ahead as Kobada moves closer to production.
Questions in the middle?
- When will definitive documentation and financial close be finalised?
- How will the partial replacement of the EEA Gold Stream affect project economics?
- What are the key regulatory hurdles remaining in Mali for project approval?