Toubani Advances Kobada Construction with 500-Strong Workforce Onsite
Toubani Resources reports rapid earthworks progress and equipment deliveries at Kobada Gold Project, maintaining its target for first gold in Q3 2027.
- Bulk earthworks and site mobilisation near 500 personnel
- Key infrastructure including water dam and airstrip advancing
- Over 59% of capital cost committed, local content at 39%
- Engineering design 67% complete, equipment shipments underway
- Project financing documentation nearing completion
Construction Momentum Builds with Nearly 500 Onsite
Toubani Resources (ASX:TRE) has escalated construction activities at its Kobada Gold Project in Mali, with site mobilisation swelling to almost 500 employees and contractors. This surge underscores the project’s transition into a major construction phase, as earthworks rapidly progress and critical infrastructure takes shape.
Bulk earthworks have cleared and levelled the process plant site, while the water storage dam and turkey’s nest are on track for completion ahead of the wet season. Clearing has begun for the airstrip and permanent camp, with construction of these facilities and the tailings storage facility earmarked as upcoming priorities. Upgrades to accommodation facilities have been largely finalised, enabling their use as the construction camp.
Equipment Deliveries and Fabrication on Schedule
The first equipment shipments have arrived in Mali, including steel plates for CIL tanks delivered to Bamako and an HDPE liner for the tailings storage facility currently at port awaiting shipment to Kobada. Approximately 20% of structural steel fabrication is complete, with shipping set to start this month. Ball mill components are also progressing on schedule, with major parts planned for imminent dispatch.
Engineering and design work by Ausenco is 67% complete, aligning with the project timeline. As of the end of May, more than 59% of the capital cost has been committed, and local content expenditure stands at 39%, reflecting significant engagement with regional suppliers and contractors. Final inspections of Bergen power units have been completed ahead of shipping.
Financing and Community Engagement Advancing
Project financing documentation and necessary approvals are nearing finalisation, with conditions precedent being addressed to expedite binding and unconditional status. This follows earlier milestones where Toubani secured a substantial US$73.3 million senior debt facility and advanced mezzanine financing options, underpinning the capital structure for Kobada’s development.
On the social front, Toubani reports positive interactions with neighbouring communities and local authorities. Stakeholder engagement remains active, particularly concerning the implementation of the Resettlement Action Plan, a key component of the project’s social licence to operate.
Managing Director Phil Russo highlighted the team’s strong execution, stating the progress provides confidence as the company prepares for the next construction phase. Toubani remains on schedule to deliver first gold production in the third quarter of 2027, positioning Kobada as a significant new gold producer in West Africa.
Bottom Line?
With construction scaling rapidly and financing close to completion, Toubani is poised to maintain its production timeline, though upcoming milestones will test execution under increasing complexity.
Questions in the middle?
- Will the finalisation of financing documentation proceed without delays?
- How will the company manage construction risks ahead of the wet season?
- What impact will local content and community engagement have on project timelines?
