Toubani nabs $29M in new cash and $250M debt deal | Australian Markets

Toubani Resources has nabbed a game-changing $29 million in recent capital corner-stoned by veteran African useful resource financier Eagle Eye Asset Holdings and an eye-popping US$160M (A$250M) debt facility to fast-track the company’s flagship Kobada gold project in Mali.

The company’s two-tranche placement has pulled in heavyweight backing, with new strategic investor A2MP Investments – the Singapore-based arm of Eagle Eye – tipping in $15.2M at 24 cents per share at a 7.8 per cent premium to the 30-day VWAP.

A2MP now holds an 18 per cent stake in Toubani, bolstered with the help of pan-African banking powerhouse Afreximbank, which sits on a enormous US$40 billion stability sheet.

Toubani may even difficulty one free unlisted three-year option for each share issued underneath the position, exercisable at 33.6 cents a share. The company says the position was strongly supported by institutional and subtle traders, together with Toubani’s board, which plans to chip in $290,000 subject to shareholder approval.

Toubani Resources additionally landed one other main funding milestone by signing a non-binding, non-exclusive dedication to offer no less than US$160M in debt funding from A2MP.

Management says the hefty facility, if finalised, will cowl a significant slice of the estimated project capex with out additional diluting its shareholders’ pursuits. Subsequently, the funding bundle will kind a key plank in Toubani’s broader financing strategy because it accelerates towards the development of its large gold project and a ultimate investment resolution by late 2025.

The financing initiatives come sizzling on the heels of definitive feasibility examine final yr that delivered a spectacular set of numbers.

With a complete indicated and inferred gold useful resource of 78 million tonnes at an average grade of 0.88 grams per tonne gold for two.2 million ounces of gold, Kobada is shaping up to be one of West Africa’s subsequent huge gold developments.

Using a gold price of US$2200 (A$3444) per ounce and investment capital expenditure of US$216M (A$338M), the examine threw up a post-tax web current worth of US$635m (A$994m).

If a more beneficiant gold price of US$2600 (A$4070) is utilized – however nonetheless 30 per cent cheaper than the present spot price – the online current worth jumps to a large US$897M (A$1.4 billion).

Kobada is forecast to provide 162,000 ounces of gold per yr at an all-in sustaining value base of simply US$1004 per ounce (A$1570) to ship $US166M (A$259M) in annual pre-tax cash flows throughout an initial 9.2-year mine life.

This strategic partnership provides EEA’s and Afreximbank’s sturdy monitor file of project execution and development in Africa with Toubani’s technical capabilities, aligning completely with our objective of unlocking worth from our premier Kobada oxide gold project.

Echoing Russo’s sentiments, A2MP management additionally flagged Kobada gold project as a sturdy investment alternative. As half of the deal, A2MP director Gaurav Gupta will be part of Toubani’s board to deliver additional firepower to the Toubani’s project finance and stakeholder engagement strategy.

A2MP brings severe African mining pedigree to the desk, with an investment monitor file that features FG Gold’s 5.8-million-ounce Baomahun gold project in Sierra Leone, Canyon Resources’ 108Mt bauxite play in Cameroon and Prospect Resources’ 107Mt Mumbezhi copper asset in Zambia.

With that sort of firepower and deep-rooted connections to African debt and equity markets, Toubani’s Kobada project is poised to reap the rewards of A2MP’s well-worn playbook.

Toubani’s milestones forward embrace finalising investment agreements with the Malian authorities, finishing environmental and social allowing and launching a pre-engineering program to de-risk construction.

As an oxide-dominant type deposit unfold over a giant, underexplored footprint, the company sees a large quantity of deeper untapped potential at Kobada.

With that in thoughts, the diamond rigs are getting ready to shift into place to focus on depth extensions beneath the identified useful resource, the place average drilling has solely penetrated about 110 metres.

With A2MP and Afreximbank in its nook, financing beginning to take form, a lot of exploration upside and a booming gold price, Kobada seems to be shaping up as a golden goose for Toubani because it stakes its declare on changing into a soon-to-be flagship gold producer in West Africa.

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