TRE
Toubani Resources Limited
ASX
Transformational Partnership and A$29M Placement
Sentiment:
Capital Raising Announcement
29 April 2025 7:33 PM
Toubani Resources secures a transformational partnership with A2MP Investments DMCC and announces a A$29 million placement to advance the Kobada Gold Project.
Capital raise
Toubani Resources is undertaking a two-tranche placement to raise A$29 million.
The company directors intend to subscribe for an additional A$290,000 subject to shareholder approval.
A2MP may participate in future capital raisings, subject to negotiation and shareholder approval.
Summary
- Toubani Resources has secured firm commitments to raise A$29 million through a two-tranche placement at A$0.24 per new share.
- A2MP Investments DMCC, supported by Afreximbank, will make a transformational investment of approximately A$15.2 million, resulting in an 18% pro-forma shareholding in Toubani upon completion of the placement.
- A2MP has also provided a non-binding debt commitment letter for a minimum US$160 million debt facility as part of Toubani's ongoing debt financing process.
- The funds raised will be used to advance the Kobada Gold Project towards a final investment decision, targeted for late CY2025, and to pursue resource growth.
- Toubani directors intend to subscribe for an aggregate amount of A$290,000, subject to shareholder approval.
- The placement includes the issue of approximately 120.8 million new fully paid ordinary shares at A$0.24 per share.
- Tranche 1 aims to raise approximately A$6.8 million, while Tranche 2 seeks to raise approximately A$22.2 million, subject to shareholder approval at an extraordinary general meeting expected in July 2025.
Sentiment
Score: 8
Explanation: The announcement is positive due to the strategic partnership, significant investment, and debt commitment, which de-risks the Kobada Gold Project and strengthens Toubani's financial position.
Highlights
- Toubani Resources will raise A$29 million through a two-tranche placement.
- A2MP Investments DMCC will make a transformational investment of approximately A$15.2 million.
- A2MP will hold an 18% pro-forma shareholding in Toubani upon completion of the placement.
- A2MP has provided a non-binding debt commitment letter for a minimum US$160 million debt facility.
- Funds will be used to advance the Kobada Gold Project towards a final investment decision targeted for late CY2025.
- The offer price of A$0.24 per new share represents a 9.4% discount to the last closing price and a 7.8% premium to the 30-day VWAP.
- Toubani directors intend to subscribe for an aggregate amount of A$290,000, subject to shareholder approval.
Positives
- The A$29 million placement strengthens Toubani's financial position.
- The strategic partnership with A2MP brings significant West African operating and resource experience.
- A2MP's support, backed by Afreximbank, enhances the project's credibility and funding prospects.
- The US$160 million debt commitment letter from A2MP provides a pathway for debt financing.
- The funds will be used to advance the Kobada Gold Project towards a final investment decision and pursue resource growth.
- The addition of Gaurav Gupta to the Toubani Board is expected to support project financing and stakeholder engagement.
Risks
- The debt commitment letter from A2MP is non-binding.
- Shareholder approval is required for Tranche 2 of the placement and the director placement.
- The final investment decision for the Kobada Gold Project is targeted for late CY2025, which is subject to various factors including finalising agreements with Mali and completing ESIA and permitting activities.
Future Outlook
Toubani aims to aggressively advance all workstreams to realize the substantial value potential for investors in the Kobada Gold Project, with the goal of becoming a leading multi-asset gold producer in West Africa.
Management Comments
- 'Kobada is a company-defining project for Toubani, and we are excited to partner with A2MP, who share our vision of its significant potential,' said Phil Russo, Toubani Managing Director.
- Gaurav Gupta, A2MP Director, stated, 'We are pleased to make this Strategic Investment into Toubani and looking forward to progressing our work on a Toubani debt facility.'
Industry Context
This announcement reflects a growing trend of strategic partnerships and investments in African mining projects, particularly in the gold sector, as companies seek to unlock the continent's vast mineral resources. The involvement of Afreximbank highlights the increasing role of African financial institutions in supporting the development of these projects.
Comparison to Industry Standards
- The US$160 million debt facility is significant for a project at this stage, potentially comparable to debt facilities secured by other West African gold projects such as those developed by Endeavour Mining or Teranga Gold before its acquisition.
- The 18% equity stake for A$15.2 million suggests a valuation that aligns with typical early-stage mining project investments, where strategic partners often seek significant ownership to influence project development.
- The placement discount of 9.4% is within the typical range for capital raisings in the mining sector, balancing the need to attract investors with minimizing dilution for existing shareholders.
Stakeholder Impact
- Shareholders will benefit from the strengthened financial position and the potential for increased value from the Kobada Gold Project.
- Employees will have increased job security and opportunities as the project advances.
- The local community in Mali could benefit from economic development and job creation associated with the project.
- Suppliers and contractors may see increased business opportunities as the project progresses.
Next Steps
- Settle Tranche 1 of the placement.
- Hold an Extraordinary General Meeting to approve related resolutions.
- Finalize investment agreements with Mali.
- Complete Environmental and Social Impact Assessment submissions and receive approvals.
- Award EPCM contract and commence basic engineering activities.
- Commence targeted diamond drilling program to test the Kobada resource at depth.
Key Dates
- 24 April 2025: Toubani closing price of A$0.265 on ASX.
- 24 April 2025: 30 trading days of Toubani on the ASX up to and including this date.
- 30 April 2025: Announcement of the Placement.
- 30 April 2025: Investor Webinar to discuss the strategic partnership and placement.
- 6 May 2025: Expected settlement of Tranche 1 of New Shares and Options.
- 7 May 2025: Expected quotation of Tranche 1 New Shares.
- Early June 2025: Notice of Extraordinary General Meeting.
- Early July 2025: Extraordinary General Meeting to approve related resolutions.
- Late CY2025: Targeted final investment decision for Kobada.
Keywords
Kobada Gold Project, A2MP Investments, Placement, Debt financing, Strategic partnership, Toubani Resources, Afreximbank
TRE
Toubani Resources Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
30 April 2025 2:40 AM
Quarterly Activities Report
- Toubani announced it had received rm commitments to raise A$29 million in a two-tranche placement.
- The placement includes a ~A$15.2m transformational investment by A2MP Investments DMCC (A2MP) a wholly owned subsidiary of Eagle Eye Asset Holdings Pte Ltd. (EEA), (a single-family oce based in Singapore) and supported by the African Export-Import Bank (Afreximbank), one of Africas most prominent multilateral nancial institutions ('Strategic Investment').
- A2MP and Toubani have also executed a non-binding, non-exclusive debt commitment letter for A2MP to provide Toubani with a minimum US$160m debt facility as part of its ongoing debt nancing process.
Capital raise
30 April 2025 2:28 AM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow them to issue up to 10% of their issued capital in Equity Securities.
- The funds raised from this facility could be used for continued exploration and development activities and/or for general working capital.
Capital raise
29 April 2025 7:33 PM
Capital Raising Announcement
- Toubani Resources is undertaking a two-tranche placement to raise A$29 million.
- The company directors intend to subscribe for an additional A$290,000 subject to shareholder approval.
- A2MP may participate in future capital raisings, subject to negotiation and shareholder approval.
Capital raise
27 April 2025 7:50 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed strategic partnership and accompanying capital raising.
Capital raise
26 March 2025 1:53 AM
Annual Report
- The company requires additional financing to carry out its exploration and development activities.
- The company is actively strengthening an already impressive asset, reducing uncertainties, and bolstering its readiness for the next steps.
Better than expected
27 January 2025 5:51 PM
Investor Presentation
- The project's low AISC of US$1,004/oz is better than many of its peers.
- The project's rapid payback period of 1.5 years is better than many other gold development projects.
- The project's low initial capital expenditure of US$216 million is better than many other gold development projects of similar scale.
Capital raise
27 January 2025 5:51 PM
Investor Presentation
- The company has appointed Endeavour Financial to lead project financing workstream.
- The company is in discussions with the Mali Government to secure the long-term future of the Kobada Gold Project.
Better than expected
27 January 2025 5:41 PM
Quarterly Activities Report
- The Definitive Feasibility Study results exceeded expectations with a high NPV, IRR, and low payback period.
- The project's low capital intensity and competitive operating costs position it favorably compared to industry standards.
Capital raise
30 October 2024 6:05 PM
Feasibility Study
- The company will need to raise capital to fund the project's development, construction, commissioning, and operation.
Better than expected
30 October 2024 6:05 PM
Feasibility Study
- The project's financial metrics, including NPV, IRR, and payback period, significantly exceeded expectations.
Better than expected
30 October 2024 6:00 PM
Feasibility Study
- The results of the Definitive Feasibility Study were better than expected due to significantly higher than anticipated post-tax NPV and IRR, driven by a combination of higher gold prices and lower than anticipated operating costs.
Delay expected
20 September 2024 4:31 AM
Option Terms and Conditions
- Share issuance may be delayed up to five business days pending receipt of exercise notice, payment, and compliance with the Corporations Act.
Capital raise
8 September 2024 7:18 PM
Investor Presentation
- Tranche 1 & 2 of a placement announced on 21 August 2024, with Tranche 2 subject to shareholder approval in October 2024.
Better than expected
29 July 2024 7:03 PM
Quarterly Activities Report
- The company increased the Kobada Mineral Resource Estimate to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
Capital raise
29 July 2024 7:03 PM
Quarterly Activities Report
- The company has less than 2 quarters of cash available for future operating activities.
- The company will need to raise further cash to fund its operations.
Delay expected
8 July 2024 7:04 PM
Missing type for ID: 4236
- ASX:TRE announces a delay.
Better than expected
1 July 2024 7:09 PM
Mineral Resource Estimate Update
- The 2024 MRE exceeded the Company's expectations in ounces converted and increases in grade.
Capital raise
31 May 2024 2:53 AM
AGM Results
- The company has approval for a 10% placement facility, which allows them to raise capital by issuing new shares.
Better than expected
21 May 2024 7:10 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and wide intersections across multiple areas of the deposit.
Better than expected
29 April 2024 9:32 PM
Quarterly Activities Report
- The initial drill results show numerous near-surface, high-grade oxide intersections, which are better than expected.
Worse than expected
29 April 2024 8:18 PM
Annual Results
- The company reported a loss of $6,625,026, which is worse than the previous year's loss of $5,136,694.
Capital raise
29 April 2024 6:10 PM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow it to issue equity securities up to 10% of its issued share capital over a 12-month period.
- The funds raised from the potential issue of Equity Securities under the 10% Placement Facility would be used towards continued exploration and development activities and for general working capital.
Capital raise
23 April 2024 7:20 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed capital raising.
Better than expected
21 April 2024 6:55 PM
Exploration Update
- The document contains better than expected results due to the high-grade gold intercepts reported from the Kobada Gold Project.
Better than expected
10 April 2024 6:22 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and near-surface oxide mineralization encountered.
Capital raise
25 March 2024 6:05 PM
Annual Results
- The Company has finite financial resources and no current cash flow from producing assets and therefore requires additional financing in order to carry out its exploration and development activities.
- There can be no assurance that any such funding will be available to the Company on favourable terms or at all.
Worse than expected
25 March 2024 6:05 PM
Annual Results
- The company's net loss increased from the previous year, indicating a worsening financial performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.