By: Mining.com

Toubani Resources has finalized a $395 million funding package to advance its flagship Kobada Gold Project in Mali, positioning the company to become West Africa's next gold producer.

The comprehensive funding arrangement comprises:

• A $242 million gold streaming agreement with existing shareholder Eagle Eye Asset Holdings.
• A $125 million multi-tranche placement, with shares issued at a 5.9% discount.
• A further $26 million from the exercise of existing options.

The company, which has a market capitalization of $149.17 million, will combine this new capital with its existing $26 million cash reserves to fully fund the project's development.

A "Company-Defining Milestone"

Managing Director Phil Russo described the funding as a pivotal achievement. “Successfully de-risking Kobada to this pivotal point is the culmination of several years of disciplined execution against our strategy,” Russo stated. He specifically acknowledged Eagle Eye Asset Holdings for their fundamental role in unlocking this outcome.

Russo emphasized the project's robust economics, calling Kobada "technically simple, oxide-dominant, and highly compelling."

Strong Project Economics

The funding decision follows a Definitive Feasibility Study completed in October 2024, which outlined a highly profitable project. Key metrics from the study include:

• Initial Development Capital (CAPEX): US$216 million (~$329 million AUD)
• All-in Sustaining Cost (AISC): US$1,175 per ounce
• Post-Tax Net Present Value (NPV): US$500 million
• Internal Rate of Return (IRR): 50%

The funds will be allocated towards development capital expenditure, further exploration, corporate costs, and working capital, paving the way for Toubani's transition from explorer to producer in West Africa's prolific Birimian Greenstone Belt.