By: Creamer Media

A term sheet for a senior secured facility of up to $40-million (A$58-million) is being progressed by the company, among other financing alternatives, to provide additional balance sheet strength and flexibility.

Toubani has executed definitive binding documentation with Eagle Eye Asset (EEA) for the $160-million gold stream, consistent with previously announced terms.

This further strengthens Toubani’s strategic relationship with its major shareholder EEA, whose dual commitment across equity and stream financing ensures alignment with all equity holders.

First drawdown of the gold stream is expected in the third quarter of this year.

Also, Toubani has executed documentation with respect to a fully underwritten A$70-million strategic equity financing through an accelerated nonrenounceable

entitlement offer structure.

EEA has committed to maintain its pro-rata ownership interest in the company.

The binding funding package provides Toubani with an ability to fund its project subsidiaries, including recoverable value-added tax payments now due during the construction phase and supports the company’s strategy to pursue resource growth in parallel with construction, specifically targeting near-surface, oxide mineralisation to extend Kobada’s life.

Importantly, the final funding mix establishes a prudent balance sheet to insulate the company from any unforeseen events prior to first production, it points out.

Strong momentum this year has seen Kobada’s capital costs now over 60% committed, to date, with total capital costs and the associated project schedule now significantly derisked and in line with plan, Toubani highlights.

“We are pleased to have completed and executed the binding funding package for the development of the Kobada gold mine. The combination of gold stream and strategic equity financing provides the funding certainty and financial flexibility required to deliver Kobada on our accelerated timeline, with first gold targeted for the third quarter of 2027.

The additional senior secured facility further strengthens the company’s financial position and enhances our ability to achieve this milestone,” says Toubani MD Phil Russo.

“Construction continues to progress on schedule, with more than 500 personnel now on site and over 60% of the project’s capital expenditure committed. The mobilisation of key contractors and critical materials has accelerated significantly as major construction activities commence,” he informs, adding that the project is on track to achieve first gold production and establish itself as a near-term, high-margin West African gold producer.

“I’d like to recognise and thank EEA for their continued commitment through both the gold stream and strategic equity financing, and to thank our shareholders for their ongoing support for the company.”