Why investors are watching Toubani Resources after its A$395m Kobada development deal

Toubani Resources Ltd (ASX: TRE) is firmly back on the radar after unveiling a game-changing A$395 million funding package to unlock its Kobada Gold Project in southern Mali. The fully funded development plan—anchored by a US$160 million gold stream and a A$125 million institutional placement—gives the Perth-based gold developer a clear runway to production by the third quarter of 2027.

For investors tracking West African gold plays, this announcement is more than just a capital raise—it’s a signal that Toubani is crossing the threshold from speculative explorer to near-term producer. With construction readiness now in sight and institutional backing locked in, the company is entering a critical execution phase that could drive a meaningful re-rating over the coming quarters.

How is the A$395 million funding package structured to support Kobada’s transition from feasibility to construction?

The capital package comprises three major components. The first is a US$160 million (A$242 million) gold stream agreement with major shareholder Eagle Eye Asset Holdings Pte Ltd (EEA), which entitles EEA to purchase 11.1% of future gold production at a fixed 20% of the prevailing spot price. The second is an A$26 million accelerated exercise of existing options by EEA, and the third is a multi-tranche institutional placement worth A$125 million, priced at A$0.40 per share.

The placement is being conducted in three tranches. The first tranche will raise A$35 million through the issuance of approximately 88 million shares, set to settle by mid-October. The second tranche, contingent on shareholder approval at an upcoming extraordinary general meeting (EGM), will raise another A$45 million. The third tranche, earmarked for EEA, will also raise A$45 million, pending Foreign Investment Review Board (FIRB) and shareholder approvals in late 2025 or early 2026.

Notably, the offer price of A$0.40 per share represents a minimal 5.9% discount to Toubani’s last traded price of A$0.425 and is in line with the 10-day volume-weighted average price (VWAP), indicating strong institutional support for the raise despite volatile gold markets.

What makes the Kobada Gold Project stand out among West African gold developments in 2025?

According to the company’s March 2025 Definitive Feasibility Study (DFS), the Kobada Gold Project boasts a low capital intensity profile with initial development capital pegged at US$216 million. The project features soft, oxide-dominant ore that supports simplified metallurgy, contributing to an all-in sustaining cost (AISC) of US$1,175 per ounce during the initial operating years.

The DFS projects a post-tax internal rate of return (IRR) of 50% at a US$2,200/oz gold price, and a robust 79% IRR at a more bullish US$3,000/oz scenario. Average annual gold production over the first seven years is expected to be 162,000 ounces, entirely derived from high-margin oxide ore. Of the 2.2 million-ounce mineral resource estimate, 90% is classified as Indicated, underscoring geological confidence in the project’s mine plan.

Toubani’s latest funding commitment will allow the company to initiate long-lead procurement, advance project engineering, and move toward a final investment decision (FID) in calendar year 2025. The company currently holds A$26 million in cash, which, when combined with the new financing, offers a fully funded runway to production.

What strategic role does Eagle Eye Asset Holdings play in Toubani’s long-term development?

Eagle Eye Asset Holdings Pte Ltd, a Singapore-based single-family office, has emerged as a key strategic partner in the Kobada Project’s development. Led by CEO Pramod Prusty, who brings over 35 years of experience in mining and infrastructure investments, EEA has a history of success in West African gold ventures. Its involvement in Kobada is more than just financial; the firm brings regional expertise and operational depth.

EEA’s participation in the funding package includes both the option exercise and a A$45 million commitment to Tranche 3 of the placement. This will increase its ownership in Toubani Resources to approximately 35%, subject to regulatory approvals. EEA will also pay a 2.5% stream option fee upon shareholder approval and retains a residual 2.5% stream right if the primary gold stream is not executed within the agreed timeline.

Importantly, Toubani retains the flexibility to refinance the gold stream through traditional senior debt. A well-advanced banking process is already underway for a comparable US$160 million senior loan, providing optionality to optimise capital structure depending on prevailing market conditions.

How is Toubani Resources allocating its A$395 million funding between Kobada construction, exploration growth, and corporate operations?

The A$395 million capital injection, alongside existing cash reserves, will be allocated primarily toward project development, exploration expansion, and corporate working capital. The US$216 million development budget includes US$60 million for the treatment plant covering crushing, milling, leaching, and tailings handling. Another US$43 million is allocated for non-processing infrastructure such as regional roads and tailings storage facilities.

Toubani is also allocating US$13 million to resource growth initiatives to further unlock upside across the Estelle corridor. The remainder—approximately US$45 million—will support corporate overheads in Australia and Mali, working capital needs, and ancillary transaction expenses.

Additional provision has been made for contingencies and stakeholder programs, including community consultation and local compensation. These components are critical given the project’s location in Mali, where environmental, social, and governance (ESG) performance can significantly influence project timelines and investor sentiment.

How are institutional investors responding to Toubani’s funding round and development roadmap?

Institutional response to the funding round has been broadly positive. The placement saw firm commitments from a mix of existing long-term shareholders and new institutional participants. Analysts tracking West African gold developments view Kobada’s oxide profile and simplified processing route as key differentiators compared to sulphide-heavy projects that demand higher CAPEX and metallurgical complexity.

With a post-funding pro forma market capitalisation of just A$297 million, Toubani Resources appears undervalued relative to peers with similar production potential. Investors anticipate that upcoming catalysts—including final shareholder approvals, gold stream execution, and early construction milestones—could unlock a meaningful valuation re-rating in 2026.

What is the sentiment around Toubani Resources stock after the announcement, and what should investors watch next?

Toubani Resources shares surged over 10.59% on October 10, 2025, closing at A$0.47 with a 12-month return of 77.36%. Trading volumes spiked to over 1.8 million shares as retail and institutional investors responded positively to the fully funded development roadmap. The company’s ASX sector rank now stands at 222 out of 1,075, and its broader ASX rank has improved to 865 out of 2,293.

Investors will be closely monitoring the timeline of shareholder approvals, FIRB clearance, and finalisation of gold stream documentation. Settlement of Tranche 1 is expected by October 17, 2025, while general meetings for Tranche 2 and EEA participation are scheduled for late November and December respectively. Drawdown of the gold stream, if elected, is targeted for mid-2026, followed by early-stage construction and eventual commissioning of the plant by 2027.

How does Toubani Resources’ A$395 million funding package position it for a market re-rating and successful project delivery in West Africa?

Toubani Resources’ A$395 million funding announcement is more than just a capital event—it’s a structural pivot in the company’s lifecycle. With robust project economics, aligned strategic partners, and institutional support, the company has put itself in a strong position to execute.

While development in Mali carries geopolitical and operational risks, the Kobada Gold Project’s simplicity, scalability, and oxide profile give it a clear advantage in a competitive gold developer landscape. For long-term investors seeking exposure to de-risked, shovel-ready gold projects in Africa, Toubani Resources is now firmly on the radar.