Toubani Resources (ASX: TRE) has launched the retail tranche of its fully underwritten A$70 million entitlement offer at A$0.30 per share, following a successful institutional raise, to fund the Kobada Gold Mine’s construction and exploration.
- Retail entitlement offer opens with A$70 million target
- Offer price set at A$0.30, a 14.3% discount to recent trading
- Institutional component completed, raising A$52 million
- Major shareholders Eagle Eye Asset and Helikon fully subscribed
- Funds to support Kobada mine development and working capital
Toubani Launches Retail Entitlement Offer After Institutional Success
Toubani Resources Limited (ASX:TRE) has kicked off the retail segment of its accelerated, non-renounceable entitlement offer, aiming to raise up to A$70 million before costs at an issue price of A$0.30 per new share. This follows the successful completion of the institutional entitlement offer, which raised approximately A$52 million, supported strongly by cornerstone shareholders Eagle Eye Asset Holdings Pte Ltd (EEA) and Helikon Investments Limited.
The retail offer allows eligible shareholders to subscribe for one new share for every 3.27 shares held at the record date of 15 July 2026, mirroring the terms of the institutional offer. The A$0.30 price represents a 14.3% discount to the last traded price of A$0.35 on 10 July, and roughly a 15% discount to the volume-weighted average price over the preceding 10 days.
Funding Package Secures Kobada Gold Mine Progress
This equity raise forms part of a broader A$302 million funding package, which includes a US$160 million gold stream agreement with EEA and a term sheet for a potential US$40 million senior secured facility led by African lender AFG Bank. The package is designed to fully fund the remaining development capital expenditure, exploration, working capital, and recoverable VAT payments associated with the Kobada Gold Mine in Mali.
Construction at Kobada is well underway, with over 60% of capital costs committed and more than 500 personnel on site. The project targets first gold production in Q3 2027, with major infrastructure such as the water storage dam and tailings storage facility progressing as planned. The funding certainty provided by the equity raise and gold stream reduces execution risk and supports Toubani’s strategy to pursue resource growth alongside construction.
Underwriting and Shareholder Participation Details
The entitlement offer is fully underwritten by Canaccord Genuity (Australia) Limited, with Helikon acting as a partial sub-underwriter for up to A$15 million of the retail offer. EEA has committed to maintain its approximately 34.2% ownership by fully subscribing to its institutional entitlement.
Retail shareholders eligible to participate include those with registered addresses in Australia, New Zealand, and specified international jurisdictions such as Canada, Hong Kong, Singapore, and the UK. Shareholders who fully subscribe to their entitlement may also apply for additional shares under a Top Up Facility, subject to board discretion and regulatory limits on voting power increases.
Potential Impact on Shareholder Dilution and Control
If shareholders do not participate fully, their holdings will be diluted by up to approximately 30.6%. The underwriting arrangements mean that, depending on retail take-up, the voting power of EEA, Helikon, and Canaccord could increase, potentially impacting the company’s control dynamics. However, the board has reserved the right to prevent any shareholder’s voting power from exceeding 20% through shortfall allocations.
The company stresses that participation is highly speculative and advises shareholders to consider the associated risks detailed in the offer booklet and investor presentation. The retail entitlement offer closes at 3:00pm Perth time on 3 August 2026, with new shares expected to commence trading on 11 August.
Bottom Line?
Toubani’s fully underwritten retail entitlement offer marks a crucial step in funding Kobada’s transition to production, but shareholder dilution and control shifts warrant close attention.
Questions in the middle?
- Will retail shareholders fully subscribe to avoid dilution and control shifts?
- How will the potential US$40 million senior secured facility affect the funding mix and balance sheet?
- What exploration results might emerge from the ongoing Kobada drilling program to extend mine life?