Toubani Resources (ASX:TRE) Reports A$120.8 Million Cash and 80% Capex Committed as Kobada Gold Construction Advances

Sonal Goyal

28 October 2026 01:11 PM AEDT

Toubani Resources (ASX:TRE) Reports A$120.8 Million Cash and 80% Capex Committed as Kobada Gold Construction Advances

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Key Highlights

Cash and equivalents were A$120.8 million at 30 September 2026 after a fully underwritten A$70 million entitlement offer.
Project commitments reached 80% of overall capex, with more than 900 personnel on site at Kobada.
Foroko drilling returned 28m at 8.86 g/t gold from 188m, including 3m at 61.2 g/t gold.
Development expenditure for the quarter was A$74.3 million, led by the process plant at A$20.6 million.

Toubani Resources Limited (ASX:TRE) reported on 28 October 2026 that construction of the Kobada Gold Project in southern Mali continued in line with schedule during the September quarter, with cash and equivalents of A$120.8 million at 30 September 2026. The company completed a fully underwritten A$70 million entitlement offer, received US$75 million of drawdowns under its US$160 million gold stream and took a 19.9% interest in Avanti Gold Corporation. More than 900 personnel were on site, and first gold is targeted for the third quarter of 2027.

Construction Progress at Kobada

The project reached 1,000,000 lost-time-injury-free hours in September. Bulk earthworks were completed, erection of the carbon-in-leach tanks began and formwork for the mill and crusher foundations was under way. Structural steel fabrication for the process plant reached 80%, or 900 tonnes, and process plant engineering is over 95% complete. Power plant engineering reached 80%, with the Bergen power units held in Bamako ready for transport.

All long-lead mechanical items have shipped, including the ball mill and mineral sizer, along with electrical bulk items and cables. More than 390 containers were shipped or in transit, with 200 offloaded at site. Project commitments total 80% of overall capex. The mining contract is awarded to Corica Mining Services S.A., already on site after the bulk earthworks and tailings storage facility construction, with mining set to start in early 2027.

Development expenditure for the quarter was A$74.3 million, of which A$20.6 million went to the process plant, A$9.8 million to the power plant and distribution, A$8.9 million to EPCM and consultants, A$4.7 million to freight and logistics, A$4.0 million to site infrastructure and A$2.8 million to construction indirects. Exploration and evaluation spending was about A$0.8 million.

Drilling Results and Resource Update

Results were received from a 108-hole, 19,138m resource delineation program at Foroko, which lies 3km from the plant. Best intersections included 28m at 8.86 g/t gold from 188m, including 3m at 61.2 g/t gold, and 12m at 12.1 g/t gold from 106m, including 4m at 24.9 g/t gold. Another hole returned 6m at 13.3 g/t gold from 133m and 10m at 10.4 g/t gold from 177m.

Pre-production infill drilling in the Kobada core returned 44m at 3.12 g/t gold from 164m, including 1m at 33.4 g/t gold, and 33m at 1.70 g/t gold from 147m. A Mineral Resource Estimate update by Entech Pty Ltd, incorporating about 26,000m of new drilling, is expected in coming weeks. Aircore drilling has begun along over 50km of mineralised structures, starting at Kobada South Extension.

Funding, Management and Community Items

The entitlement offer was run at A$0.30 per share on a 1-for-3.27 basis. Its institutional component raised about A$52 million through roughly 172 million new shares, and the retail component completed in August 2026. The US$160 million gold stream is with Eagle Eye Asset Holdings Pte Ltd, and an additional liquidity facility is being finalised.

For Avanti, Toubani acquired 44.5 million shares for 72.9 million Toubani shares and 36.45 million options exercisable at A$0.60. Avanti holds 73.5% of the Misisi Gold Project in the Democratic Republic of Congo. Mark Somlyay joined as Chief Financial Officer, Kerry Griffin as Operations Director and Riaan Lombard as General Manager of Kobada.

A decree from the Council of Ministers established the State's interest in the project, and local employment rose to 121 positions. Four boreholes and thirty water standpipes were handed over in four communities.

Quarter in Summary

Toubani ended September with A$120.8 million in cash, 80% of capex committed and a construction workforce above 900, while development spending totalled A$74.3 million for the quarter. Foroko and Kobada drilling supplied the data now feeding a resource update from Entech, and mining is scheduled to begin in early 2027, ahead of first gold targeted for the third quarter of 2027.

FAQs

Q: How much cash did Toubani hold at 30 September 2026?

A: Cash and equivalents totalled A$120.8 million at 30 September 2026.

Q: What did the A$70 million raising involve?

A: It was a fully underwritten 1-for-3.27 accelerated non-renounceable entitlement offer at A$0.30 per share. The institutional component raised about A$52 million.

Q: What were the best Foroko drilling results?

A: Hole FORC26_107 returned 28m at 8.86 g/t gold from 188m, including 3m at 61.2 g/t gold.

Q: When is first gold targeted at Kobada?

A: First gold is targeted for the third quarter of 2027, with mining expected to begin in early 2027.

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