Toubani Secures $258M Funding for Kobada Gold Project in Mali

Toubani Advances Kobada Gold Project with $258M Funding

Toubani Resources has secured a $258 million (A$395 million) funding package to fully finance the Kobada gold project in Mali. This milestone follows the company’s definitive feasibility study (DFS), which highlighted a high-margin, cost-effective operation. The DFS projects annual production of 162,000 ounces of gold during the first seven years, all from oxide ore. At $2,200/oz gold, the project’s net present value (NPV) stands at $500 million with a 50% internal rate of return (IRR).

The funding package includes a A$242 million gold stream agreement with Eagle Eye Asset Holdings (EEA), a significant shareholder. Additionally, EEA will raise A$26 million through exercising existing options, and Toubani will execute a A$125 million multi-tranche equity placement to institutional investors. These funds will cover development costs, exploration, and working capital for Kobada’s next phase.

Funding Strategy and Project Outlook for Kobada Gold Project

Eagle Eye Asset Holdings commits $160 million in exchange for 11.1% of Kobada’s gold production, purchasing gold at 20% of the spot price. The equity placement involves three phases, including A$45 million from EEA, pending regulatory approval. EEA’s option exercise will boost its stake to about 35%.

Toubani’s budget allocates $60 million to plant construction and $43 million to non-processing infrastructure. Additional funds will support exploration, corporate needs, and transaction expenses. The company targets a final investment decision within 2025 and aims to begin gold production by Q3 2027.

 

SuperMetalPrice Commentary:

Toubani’s Kobada gold project financing marks a pivotal step toward becoming a major West African gold producer. The strong financial backing and compelling DFS metrics highlight Kobada’s potential as a low-cost, high-return operation. Eagle Eye’s strategic partnership strengthens project execution and signals investor confidence. As gold demand remains robust, Kobada could reshape regional mining dynamics and deliver substantial shareholder value.