Toubani Secures US$73.3M Project Finance Commitment for Kobada Gold Mine Construction

Major Financing Milestone Achieved with Coris Bank

Toubani Resources (ASX:TRE) has taken a significant step forward in funding its Kobada Gold Mine in Mali by executing a binding commitment letter securing a US$73.3 million senior debt facility with a consortium led by Coris Bank International Mali SA. This formal commitment, subject to Malian Government approvals and final documentation, anchors the company’s broader financing strategy to support construction and development.

The secured project finance facility is a core component of the company's previously announced US$83.5 million funding package, reflecting steady progress since the initial credit-approved term sheet revealed in January 2026. This infusion of capital aims to underpin the transition from construction to production, positioning Kobada as a forthcoming gold producer in West Africa.

Progress on Ancillary Funding and Gold Stream Arrangements

Beyond the senior debt facility, Toubani is advancing the finalisation of a US$10.2 million mezzanine facility, which will complement the Coris Bank funding. While definitive documentation is still in progress, this mezzanine tranche will likely provide additional financial flexibility during the development phase.

Simultaneously, the company is working closely with Eagle Eye Asset Holdings Pte Ltd on a gold stream facility, aiming to optimise the overall capital structure. These multi-layered funding arrangements reflect a complex but coordinated approach to financing, balancing debt and streaming components to manage risk and capital cost.

Strong Cash Reserves Bolster Financial Position

As of 31 March 2026, Toubani maintains a robust cash balance of A$124.2 million, providing a significant buffer and capital flexibility. This cash position complements the debt facilities, allowing the company to navigate timing and execution risks inherent in project finance and construction.

Managing Director Phil Russo highlighted the steady pace of project financing and construction, noting that the Kobada team’s progress has been "exceptional". The company remains focused on delivering West Africa’s next major gold mine, with construction milestones steadily advancing as financing arrangements crystallise.

Construction Advancing Amid Financing Finalisation

The company’s construction efforts at Kobada have been moving forward since early 2026, with earthworks and engineering activities well underway. This financing commitment dovetails with the construction progress, underpinning the pathway to first gold production targeted for late 2027.

This development phase follows the securing of key permits and environmental approvals, which cleared regulatory hurdles earlier this year. The combined momentum of funding and on-ground work sets a tangible timeline for Kobada’s emergence as a new gold producer in the region.

Notably, the US$73.3 million senior debt facility and the ongoing work on mezzanine and streaming agreements mirror the layered financing approach typical of large mining projects in emerging markets, balancing debt capacity with alternative capital sources.

Investors may recall the company’s earlier advances, including a US$83.5 million financing package and the commencement of construction activities. These milestones collectively signal Toubani's commitment to transforming Kobada from a development project into a producing asset.

While the binding commitment letter marks a milestone, the finalisation of full documentation and government approvals remain critical next steps. The company’s ability to navigate these conditions will be central to maintaining the project’s development schedule and financing integrity.