Toubani Resources Secures US$208 Million to Advance Kobada Gold Mine

Major Funding Package Secures Kobada’s Path to Production

Toubani Resources (ASX:TRE) has cemented a US$208 million (A$302 million) funding package to push the Kobada Gold Mine into production, combining a US$160 million gold stream with Eagle Eye Asset and a fully underwritten US$48 million strategic equity raise. This financial backing, paired with a progressing term sheet for an additional US$40 million senior secured facility led by African lender AFG Bank, positions Kobada firmly on schedule for first gold in the third quarter of 2027.

Gold Stream and Equity Raise Strengthen Balance Sheet

The gold stream deal with Eagle Eye Asset, Toubani’s major shareholder holding roughly 34.2%, enables drawdown starting Q3 2026 and involves delivering 11.1% of Kobada’s gold production at 20% of spot price until 1.25 times the stream amount is repaid. Alongside this, the company is launching a 1-for-3.27 accelerated non-renounceable entitlement offer priced at A$0.30 per share, a 14.3% discount to recent trading, to raise approximately A$70 million. Eagle Eye Asset has committed to maintain its pro-rata stake, underpinning the equity raise’s credibility and support.

Construction Progress and Capital Commitment

Construction at Kobada is advancing steadily with over 500 workers onsite and more than 60% of the project’s capital expenditure committed. Key infrastructure including the water storage dam and tailings storage site is well underway, while major process plant construction activities have commenced, with long lead items like the mineral sizer and ball mill ordered on schedule. The funding package covers remaining development capex of US$188 million, US$7 million for exploration and growth initiatives, and US$45 million for working capital and VAT payments during construction.

Senior Secured Facility Adds Financial Flexibility

While the US$160 million gold stream reduces the need for previously contemplated senior debt facilities with complex approval hurdles, Toubani is still progressing a term sheet for a US$40 million senior secured facility with AFG Bank. This facility, expected to be available for drawdown in Q3 2026, would sit senior to the gold stream in security ranking and provide additional balance sheet flexibility during construction. The company retains a 75% buyback right on the gold stream exercisable up to two years after commissioning, offering optionality to optimise capital structure once Kobada reaches positive cash flow.

Strategic Implications and Next Steps

Phil Russo, Managing Director, highlighted the milestone of executing the binding funding package as a key enabler for delivering Kobada on an accelerated timeline. The combined equity and streaming finance structure aligns the interests of major shareholders and provides a low-risk funding solution. With the project de-risked and capital costs in line with plan, Toubani is well positioned to establish Kobada as a near-term, high-margin gold producer in West Africa. Upcoming focus will be on the completion of the equity raise, securing the senior facility, and continuing construction momentum.