Toubani Resources Inc. (ASX: TRE) has locked in a major financing package totaling US$208 million to propel its Kobada gold project in Mali toward production. The funding, which combines a gold stream and a strategic equity raise, provides the capital structure required to maintain the project's current construction timeline. The company confirmed that over 60% of total capital costs for the mine are already committed, with heavy equipment and materials for the process plant now arriving on-site.

The package consists of a US$160 million gold stream agreement with the company's major shareholder, Eagle Eye Asset, alongside a fully underwritten A$70 million equity financing. To further bolster its balance sheet, Toubani is also progressing a term sheet for a senior secured facility of up to US$40 million. This additional debt is being pursued through a syndicate led by the African lender AFG Bank, offering the company flexibility during the construction phase without the complexity associated with the previously considered senior debt facilities.

"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." — Phil Russo, Managing Director of Toubani

Operations at the site remain active, with more than 500 personnel currently deployed. Infrastructure development is well underway; civil works, including the water storage dam and Turkey's nest, are largely finished, while construction has commenced on the tailings storage facility. The company expects the first drawdown from the gold stream to occur in the third quarter of 2026. This liquidity will also support ongoing resource expansion initiatives, as the firm aims to target near-surface oxide mineralization to potentially extend the mine’s life.

The strategic equity financing is being executed through an accelerated non-renounceable entitlement offer. Eligible retail shareholders are invited to participate starting 20 July 2026, with the retail component of the offer scheduled to close at 5:00pm on 3 August 2026. With the funding now secured, Toubani is focused on meeting its operational milestones as it works toward achieving its primary goal of first gold production in the third quarter of 2027.

Read the full announcement: Funding Secured to Advance Kobada into Production