Toubani Resources Ltd. has finalized a binding funding package totaling US$208 million (A$302 million) to complete construction of the Kobada Gold Mine, targeting first gold production in Q3 2027.
The funding package comprises a US$160 million (A$232 million) gold streaming agreement with major shareholder Eagle Eye Asset Holdings Pte, and a fully underwritten US$48 million (A$70 million) strategic equity financing. Additionally, a term sheet is in progress for a senior secured facility of up to US$40 million (A$58 million) from a syndicate led by African lender AFG Bank to provide further financial flexibility.
Binding funding package strengthens project execution
The US$160 million gold stream agreement with Eagle Eye Asset solidifies a strategic partnership that aligns the interests of all equity holders. The first drawdown under the gold stream is planned for Q3 2026, ensuring timely, low-risk funding to keep Kobada on schedule for initial gold production in Q3 2027. Over 60% of the project’s capital cost is now committed, de-risking the construction timeline and budget.
The strategic equity financing, conducted through a non-renounceable entitlement offer, is fully underwritten and supported by Eagle Eye Asset, which will maintain its approximately 34.2% ownership stake. This capital injection will cover construction phase costs, including recoverable VAT payments, and support ongoing resource growth exploration targeting near-surface mineralisation to extend Kobada’s mine life.
Additional debt facility to enhance financial flexibility
While the gold stream funding negates the immediate need for previously considered senior debt facilities with longer approval processes, Toubani is progressing a US$40 million senior secured facility with AFG Bank. This facility will provide added balance sheet flexibility during construction, with customary terms and senior security over the gold stream package. It is expected to be available for drawdown in Q3 2026.
Toubani also retains a 75% buyback right on the gold stream for up to two years post-commissioning, offering optionality to optimize the capital structure once the project achieves positive cash flow.
“We are pleased to have secured this binding funding package, providing certainty and flexibility to deliver Kobada on our accelerated timeline,” said Phil Russo. “With more than 500 personnel on site and major construction activities underway, Kobada remains on track for first gold production in the third quarter of 2027. We thank Eagle Eye Asset for their ongoing support and our shareholders for their confidence in Toubani’s vision to establish a high-margin gold mine in West Africa.” Phil Russo, Managing Director on project progress and funding
With funding secured and construction advancing, Toubani is well positioned to complete the Kobada Gold Mine and begin production as planned in 2027. The company continues to focus on resource growth and prudent financial management to ensure the project’s long-term success.
