Toubani Resources Acquires 19.9% Stake in Avanti Gold to Access Misisi Project

Strategic Equity Investment Expands Toubani’s African Gold Exposure

Toubani Resources Limited (ASX:TRE) is set to broaden its African gold footprint by acquiring a 19.9% stake in Canadian-listed Avanti Gold Corporation (CSE: AGC). The transaction, structured as a share swap, will see Toubani issue 72.9 million shares and 36.45 million options to certain Avanti shareholders in exchange for 44.5 million Avanti shares. This move gives Toubani a significant foothold in the Misisi Gold Project, located in the Democratic Republic of Congo (DRC), a jurisdiction noted for its rich mineral endowment and improving mining climate.

Misisi Gold Project’s Akyanga Deposit Offers High-Grade Potential

The Misisi Gold Project, where Avanti holds a 73.5% interest, covers 133 square kilometres of granted mining licenses within the Kibara Gold Belt. Its flagship Akyanga Deposit boasts an inferred mineral resource estimate (MRE) of 40.8 million tonnes grading 2.37 grams per tonne gold, equating to approximately 3.1 million ounces, reported under Canadian NI43-101 standards. While this resource estimate is not yet JORC-compliant and carries the usual caveats about further evaluation and classification, it positions Misisi as a premier development asset in Africa’s gold sector.

Transaction Details and Strategic Rationale

The share swap deal involves Toubani issuing shares and options exercisable at $0.60 within three years. The transaction is expected to close by 20 July 2026, subject to customary conditions. Toubani’s Managing Director, Phil Russo, highlighted the strategic nature of the investment, noting the company’s expertise in resource delineation, engineering studies, and project funding could accelerate the Misisi project’s development. This comes as Toubani remains focused on advancing its flagship Kobada Gold Project in Mali, which hosts a combined 2.2 million ounces of mineral resources and is targeting production in 2027.

Ongoing Exploration and Development at Misisi

Avanti is actively drilling at Misisi with a 42,000-metre program underway, supported by two diamond rigs on site. Beyond Akyanga, the project includes five additional advanced targets within 25 kilometres, identified through soil sampling, trenching, and diamond drilling. The company’s work to date has been underpinned by rigorous geological modelling, quality assurance, and metallurgical testwork, supporting the assumption of open-pit mining amenability. However, detailed geotechnical studies remain pending to refine mining designs.

Toubani’s Dual Focus on Kobada and Misisi

While the Misisi Gold Project is not currently material to Toubani’s portfolio given its minority equity position, the investment offers exposure to a high-grade African gold asset complementary to its Kobada project. Kobada’s development is progressing steadily with construction underway and financing secured, targeting first gold by Q3 2027. This dual exposure could position Toubani to leverage operational synergies and regional expertise across Mali and the DRC, two key gold jurisdictions in Africa.