Toubani Resources has pushed construction and exploration forward at its Kobada Gold Project in Mali, backed by a US$208 million funding package and high-grade drilling results that support an upcoming resource update.
- Construction over 60% complete with key contractors mobilised
- High-grade drilling intersections bolster resource confidence
- Secured US$160 million gold stream and A$70 million equity raise
- Acquired 19.9% stake in Avanti Gold Corp expanding African footprint
- Cash position strengthened to A$144 million post equity raise
Construction Accelerates at Kobada Gold Project
Toubani Resources (ASX:TRE) is steadily advancing its Kobada Gold Project in southern Mali, with construction activities progressing on schedule. Bulk earthworks have been completed at the water storage dam and camp sites, while work continues at the process plant location. Engineering milestones are notable, with process plant engineering now over 60% complete and power plant engineering reaching 70%. More than 550 personnel have been mobilised on site, and several key construction contracts; including concrete, structural, mechanical, and piping; have been awarded and are underway. The mining services contract was secured by Corica Mining Services S.A, signalling readiness for operational ramp-up.
Drilling Delivers High-Grade Gold Intersections
Exploration drilling during the quarter returned impressive high-grade gold intersections in the northern area of the Kobada Mineral Resource Estimate (MRE), with assays such as 72m at 2.27g/t gold including 3m at 16.8g/t and 1m at 86.5g/t. Follow-up drilling at Kobada South confirmed mineralisation along a 1.6km strike length parallel to the main deposit, with results like 1m at 79.2g/t gold. These results underpin a Mineral Resource Estimate update planned for the upcoming quarter, aimed at refining mine planning and extending the project’s optionality through near-surface oxide mineralisation at adjacent prospects like Foroko and Gosso.
US$208 Million Funding Package Secures Construction
Toubani has locked in a binding funding package totalling US$208 million (A$302 million), comprising a US$160 million gold stream agreement with Eagle Eye Asset Holdings and a fully underwritten A$70 million strategic equity raising. The gold stream drawdown is expected in Q3 2026, providing crucial capital to complete Kobada’s construction phase. The equity raising, conducted via a 1-for-3.27 accelerated non-renounceable entitlement offer priced at A$0.30 per share, has already raised A$52 million from institutional investors, with a retail component underway. This funding mix strengthens the company’s balance sheet, supporting ongoing construction and exploration activities while maintaining flexibility with a potential senior secured facility in the wings.
Strategic Expansion with Avanti Gold Stake
In a strategic move to expand its African gold portfolio, Toubani acquired a 19.9% stake in Canadian-listed Avanti Gold Corp, which holds the Misisi Gold Project in the Democratic Republic of Congo. The project includes the Akyanga Deposit, with an inferred resource of 3.1 million ounces of gold. This investment diversifies Toubani’s exposure beyond Mali and complements its growth ambitions across the continent.
Community Engagement and Environmental Monitoring Progress
Toubani continues positive engagement with local communities and government bodies in Mali. Compensation for Project Affected Persons in Priority Zone 2 has been completed, enabling the start of tailings storage facility construction. Community development initiatives, capacity-building sessions, and local employment awareness campaigns are ongoing. On the environmental front, the company has expanded groundwater monitoring and commissioned a real-time air quality station, generating continuous data to support sustainable operations.
Bottom Line?
With construction commitments surpassing 60% and a robust funding package secured, Toubani is positioned to maintain momentum at Kobada, though upcoming resource updates and operational milestones will be critical to watch.
Questions in the middle?
- How will the upcoming Mineral Resource Estimate update impact Kobada’s mine plan and project economics?
- What are the terms and potential implications of the senior secured facility currently under negotiation?
- How might the Avanti Gold stake influence Toubani’s strategic focus and capital allocation in Africa?