- Toubani Resources (TRE) is raising $3.8 million to fund exploration at its Kobada gold project in Mali
- Kobada is known to contain gold-bearing shear zones
- An existing resource posits a potential yield of over 2Moz of gold
- The company will issue Chess Depositary Interests (CDIs) instead of ordinary shares
- A DFS remains ongoing for Kobada
- TRE shares last traded at 14 cents
Toubani Resources (TRE) has received firm commitments from institutional and sophisticated investors to raise $3.8 million to fund exploration activities at its Kobada gold project in Mali.
The placement involves the issuance of 31.6 million Chess Depositary Interests at 12 cents per CDI. It represents a 14.3 per cent discount to the last close on August 25.
CDIs will be issued under two tranches. The first round of CDIs will be settled by early September, with the expected issue date on the 7th, while the second tranche will be subject to shareholder approval at an upcoming general meeting.
“We are excited to be moving into … the recently announced significant oxide gold resource and with a clear line of sight on the potential of Kobada as a gold project dominated by free dig, free milling and soft rock material,” TRE CEO Phil Russo said.
“We look forward to surfacing this value and showcasing the attractiveness of Kobada in the months ahead.”
Toubani’s Kobada project is known to contain shear zones bearing gold; shear zones are a geological phenomenon that typically traps mineralisation in inaccessible pockets over the grand span of geological time.
Earlier this month, the company updated its mineral resource estimate (MRE) for the project, revealing 2.4 million ounces of gold from 87 million tonnes of ore grading at 0.86g/t.
Of that resource, approximately 1.5 million ounces are ‘indicated.’
Since July, an ongoing definitive feasibility study (DFS) has been coming together, with the new resource expected to be reflected in that document.
TRE shares last traded at 14 cents.