• Toubani Resources plans to raise $259 million (AUD 395 million) to fund development of the Kobada gold project in Mali.
• The company targets a final investment decision (FID) by end-2025 and aims to start production by Q3 2027.
• The Kobada mine is expected to produce 1.49 million ounces of gold over 9.2 years, requiring an initial investment of $216 million.

Toubani Resources announced on Friday that it plans to raise 395 million Australian dollars (about $259 million) to finance the development of its Kobada gold project in Mali. The company detailed the funding structure in a statement released on October 10, outlining several transactions involving Singapore-based Eagle Eye Asset Holdings (EEA), with which it signed a memorandum of understanding in April.

The financing includes AUD 242 million from EEA through a streaming agreement granting the fund the right to purchase 11.1% of Kobada’s future gold production. In addition, EEA is expected to contribute AUD 26 million by exercising previously issued options. Toubani also plans to raise AUD 125 million through a three-tranche private placement backed by institutional investors.

Toubani said the completion of the financing plan depends on shareholder approval, particularly for the streaming agreement and the share placement. The company intends to use the proceeds to move toward a final investment decision (FID) in 2025 and to launch commercial production by the third quarter of 2027.

According to a 2024 feasibility study, the Kobada project could deliver 1.49 million ounces of gold over a 9.2-year mine life, averaging 162,000 ounces per year. The project requires an initial investment of $216 million to achieve this production level.

In parallel, Toubani is finalizing the environmental and social impact assessment (ESIA) and working to secure mining permits from the Malian authorities—two prerequisites for construction.

Kobada aligns with Mali’s new 2023 Mining Code, which aims to increase state and local participation in mining projects. Under a mining convention signed in April, the Malian government will hold a 10% free-carried interest and retains the option to acquire an additional 20% paid stake. Domestic investors will also be allowed to acquire a 5% interest in the project.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange Jason Quenum