Toubani Resources has kicked off construction at its Kobada Gold Project in Mali following a positive Final Investment Decision, while securing a US$83.5 million financing package to support development.
- Final Investment Decision confirms Kobada development
- Construction underway with bulk earthworks and engineering progress
- US$83.5 million credit-approved financing from Coris Bank
- Drilling extends oxide mineralisation near processing plant
- Cash position at A$124.2 million supports project momentum
Construction Momentum Builds at Kobada
Toubani Resources (ASX:TRE) has formally commenced construction activities at its Kobada Gold Project in southern Mali, marking a tangible step forward after the Board’s positive Final Investment Decision (FID). Bulk earthworks are underway on critical infrastructure including the water storage dam, process plant, and camp sites, with over 300 personnel now mobilised on site. Engineering progress is notable, with process plant design over 40% complete and power plant engineering at 58%, positioning the project on track for its targeted commissioning timeline.
The environmental permit, a key regulatory hurdle, was granted by Mali’s Ministry of Environment, sanctioning the company’s Environmental and Social Impact Assessment and Resettlement Action Plan. Completion of Phase 1 resettlement compensation has cleared the way for ongoing construction, underscoring the company’s commitment to community engagement and regulatory compliance. The awarding of the concrete contractor and advanced stages of mining contractor selection further signal accelerating development activity.
Exploration Extends Mineralisation Near Plant
Exploration drilling continues to add value beyond the current Mineral Resource Estimate (MRE), particularly at Kobada South where oxide mineralisation has been delineated along a 1.6-kilometre strike length parallel to the main shear zone and less than one kilometre from the process plant. High-grade intercepts such as 1 metre at 39.7 g/t and 7 metres at 2.31 g/t gold highlight the potential to expand mineable resources and extend project life. These results are expected to feed into the next MRE update, which could enhance operational flexibility and future mine planning.
Drilling also focuses on near-mine infrastructure sites, clearing zones for construction and targeting additional oxide resources at Kobada North and other prospects like Foroko and Gosso. The company has budgeted 60,000 metres of reverse circulation drilling in 2026 as part of a broader 100,000-metre program, reflecting an aggressive strategy to grow the resource base alongside construction progress. This drilling campaign builds on the company’s earlier resource expansions reported in July 2024 and March 2025.
Financing Package Secured to Support Development
On the corporate front, Toubani has secured a credit-approved term sheet from Coris Bank International SA for a US$73.3 million senior secured project finance facility plus a US$10.2 million mezzanine facility. This combined US$83.5 million package will replace half of the previously announced gold streaming agreement with EEA, reducing reliance on streaming and improving capital structure flexibility. Definitive documentation is progressing toward financial close expected in the June quarter.
Coris Bank, with a track record of backing West African mining projects, complements Toubani’s existing funding, which includes A$45 million raised from a recent tranche placement to EEA and a total cash balance of A$124.2 million at quarter end. This liquidity supports ongoing construction and exploration activities, with project commitments now at 50% of total capital expenditure, aligning with the company’s development schedule.
The financing update follows the company’s earlier announcement of a $395 million funding package, reflecting sustained investor confidence in Kobada’s potential and Toubani’s execution capabilities. The company is also advancing final contracts for key construction phases, including the Structural, Piping and Mechanical installation, and mobilising logistics partners to streamline supply chain operations.
Community Engagement and Government Partnership
Toubani’s relationship with the State of Mali remains a cornerstone of project progress. A binding agreement formalised in January 2026 secures the mining licence transfer and sets governance frameworks for the project’s development and operation. The company has engaged extensively with local communities, conducting a traditional groundbreaking ceremony that involved village chiefs and cultural leaders, signalling strong social licence to operate.
Resettlement Action Plan activities continue, with all Project Affected Persons in Priority Zone 1 compensated and Phase 2 underway. Mediation and steering committees have been established to manage ongoing social impacts, reflecting a structured approach to community relations. These efforts are critical to maintaining project momentum and mitigating social risks.
Looking ahead, Toubani anticipates a steady flow of news throughout 2026, including further drilling results, resource estimate updates, construction milestones, and the anticipated financial close of both the Coris Bank facility and gold streaming arrangements with EEA. The company’s development trajectory, underpinned by solid financing and community support, positions Kobada as a notable emerging gold project in West Africa.
These developments build on the company’s earlier milestones such as the positive Final Investment Decision and the environmental permit approval, which collectively have paved the way for the current construction phase and financing progress.
Bottom Line?
With construction underway and substantial financing secured, Toubani is poised to advance Kobada toward production, though upcoming resource updates and financing closures will be critical to watch.
Questions in the middle?
- Will the forthcoming Mineral Resource Estimate update materially increase oxide resources near the plant?
- How smoothly will Toubani navigate finalising the Coris Bank financing and gold streaming agreements?
- What operational challenges might arise as construction scales up with over 300 personnel now onsite?