Toubani Issues 72.9 Million Shares and 36.45 Million Options for Avanti Acquisition

Toubani Extends Reach with Significant Avanti Gold Investment

Toubani Resources (ASX:TRE) has sealed its acquisition of a 19.9% stake in Avanti Gold Corporation (CSE: AGC), marking a notable expansion beyond its flagship Kobada Gold Project in Mali. The deal involved Toubani acquiring 44.5 million Avanti shares in exchange for issuing 72.9 million of its own shares plus granting 36.45 million options. These options carry an exercise price of $0.60 and will expire three years from their issue date, subject to investor uptake under a newly filed prospectus.

Strategic Bet on Misisi Gold Project’s Potential

This investment grants Toubani exposure to Avanti’s Misisi Gold Project in the Democratic Republic of Congo, which holds an inferred resource of approximately 3.1 million ounces. While Toubani remains focused on advancing Kobada towards production, this stake diversifies its portfolio into a prolific African gold jurisdiction that has attracted growing exploration interest. The transaction’s structure; combining share issuance with options; suggests Toubani is balancing immediate equity dilution with potential future capital upside should the options be exercised.

Capital Impact and Regulatory Steps Ahead

The issuance of 72.9 million shares and 36.45 million options will increase Toubani’s share count, introducing dilution considerations for existing shareholders. The options’ exercise price of $0.60 sits above recent trading levels, which could mitigate immediate dilution but also places a premium on future share price performance. The option grant is contingent on investor applications under the prospectus lodged concurrently with the announcement, introducing some uncertainty around final capital structure changes.

Toubani’s Growth Trajectory Remains Focused on Kobada

While this acquisition signals a strategic diversification, Toubani continues to push ahead with its core Kobada Gold Project development in Mali, which recently secured a US$208 million funding package to keep construction on track for first gold in Q3 2027. The company has also locked in Corica Mining Services as the mining contractor, underpinning its production timeline. These developments reflect a dual approach: advancing a near-term production asset while building optionality through strategic investments like Avanti.

Next Steps for Investors

Market participants will be watching the uptake of the option prospectus closely, as this will clarify the extent of dilution and potential capital inflows. Additionally, progress updates from Avanti on the Misisi project could influence the value of Toubani’s stake. For Toubani, balancing the capital demands of Kobada’s development with the strategic benefits of its Avanti investment will be a key area to monitor in the months ahead.