Toubani Resources has secured key environmental approvals and a $395 million funding package to propel its Kobada Gold Project in Mali towards construction, alongside launching its largest-ever drilling campaign targeting resource expansion.
- Environmental and social permits approved by Malian authorities
- A$395 million funding package including gold streaming and equity placements
- Largest drilling program of 100,000m underway targeting resource growth
- Major engineering contracts awarded and long lead equipment ordered
- Credit-approved term sheet secured for US$83.5 million project finance
Project Milestones and Approvals
Toubani Resources Limited (ASX – TRE) has marked significant progress in advancing its Kobada Gold Project in southern Mali during the December 2025 quarter. The company secured critical environmental and social approvals, including the Environmental and Social Impact Assessment (ESIA), Resettlement Action Plan (RAP), and water extraction permits, all sanctioned by Malian authorities. These approvals pave the way for the anticipated issuance of the Environmental Permit in the first quarter of 2026, a key regulatory milestone that will allow construction activities to commence.
Complementing these regulatory achievements, Toubani has filled all key project roles both in Perth and Mali, including Construction Manager, RAP Manager, and Finance Manager, ensuring operational readiness as the project moves closer to a Final Investment Decision (FID).
Engineering and Construction Progress
Engineering contractor Ausenco has been actively advancing detailed engineering and procurement activities. The company has ordered long lead items such as the ball mill, mineral sizer, CIL tank platework, and structural steel, all on track for timely delivery in line with the construction schedule. Key contracts have been awarded, including logistics and bulk earthworks partners, with mining contractor tenders in the final evaluation stages, poised for award in the second quarter of 2026.
Power plant tenders have been received, with a preferred tenderer expected to be appointed shortly to ensure power availability ahead of commissioning. Designs for tailings and water storage facilities are substantially complete, with early earthworks planned to capture wet season runoff and reduce water extraction needs.
Exploration and Resource Growth
Toubani has launched its largest drilling campaign to date at Kobada, targeting a total of 100,000 metres in 2026. This includes 60,000 metres of Reverse Circulation (RC) drilling to expand near-surface oxide mineral resources and 40,000 metres of aircore drilling to test regional targets along known mineralisation corridors. Diamond core drilling continues to reveal high-grade mineralisation below and outside the current Mineral Resource Estimate (MRE), with standout intersections such as 1 metre at 116 grams per tonne (g/t) gold and 1.7 metres at 97.4 g/t gold.
Near-surface oxide mineralisation has also been identified in new zones outside the current MRE, with impressive results including 7 metres at 9.43 g/t gold, featuring a 1-metre interval at 55.2 g/t. These discoveries are expected to contribute to an updated MRE planned for the first half of 2026, potentially extending the mine life and enhancing project economics.
Robust Funding Package and Financing Update
Financially, Toubani has secured a comprehensive A$395 million funding package to support Kobada’s development. This includes a A$242 million (US$160 million) gold streaming agreement with major shareholder Eagle Eye Asset Holdings Pte Ltd (EEA), a A$26 million accelerated exercise of existing options by EEA, and a A$125 million multi-tranche placement priced at A$0.40 per share.
Subsequent to the quarter, the company received a credit-approved term sheet from Coris Bank International SA for a US$73.3 million senior secured project finance facility and a US$10.2 million mezzanine facility. These facilities are intended to replace half of the previously announced EEA gold stream, diversifying the project’s funding sources and potentially improving financing terms.
Looking Ahead
With the environmental permit expected imminently and the FID on the horizon, Toubani is well-positioned to transition Kobada from development to construction. The ongoing drilling program and forthcoming resource update will be critical in underpinning the project’s value and operational plans. Meanwhile, the company’s engagement with Malian authorities and local communities continues to be a priority, ensuring social license and regulatory compliance as Kobada advances.
Bottom Line?
As Toubani nears construction with robust funding and promising exploration results, the next few months will be pivotal in defining Kobada’s future trajectory.
Questions in the middle?
- Will the upcoming Mineral Resource Estimate update significantly increase Kobada’s resource base?
- How will the replacement of part of the gold stream with Coris Bank debt affect project financing costs and flexibility?
- What is the timeline for the Final Investment Decision and commencement of civil works following environmental permit issuance?