Toubani Resources Limited (ASX:TRE): Kobada Construction Advances Towards First Gold

Aditi Sarkar

28 October 2026 03:07 PM AEDT

Toubani Resources Limited (ASX:TRE): Kobada Construction Advances Towards First Gold

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Highlights

Carbon-in-leach tank erection commenced at the Kobada project during September 2026.
Process plant engineering exceeded 95%, while major mechanical equipment had been shipped.
More than 70% of project costs were committed by the October construction update.
Approximately US$50 million had been drawn from a US$160 million gold stream.
First gold remains targeted for the third quarter of 2027.

Toubani Resources Limited (ASX:TRE) is a gold development company advancing the Kobada Gold Project in southern Mali. Its October 2026 construction update reported the start of carbon-in-leach tank erection, substantial progress on plant engineering and continued preparation for mining. These activities form part of Toubani’s transition from project development into construction and operational readiness, with first gold targeted for the third quarter of 2027.

Plant Construction and Site Readiness

The 6 October 2026 announcement confirmed that Toubani Resources (ASX:TRE) had commenced carbon-in-leach tank erection during September. Bulk earthworks at the process plant were complete, while work continued at the tailings storage facility. Formwork for mill and crusher foundations was being prepared ahead of concrete pours.

Process plant engineering was more than 95% complete, and power plant engineering was approaching 90%. Around 900 tonnes of structural steel, representing 80% of fabrication, had been shipped. All long-lead mechanical items, including the ball mill, had also been shipped. These milestones relate to equipment and site preparation rather than commercial gold production.

More than 900 people were working at Kobada. Toubani Resources (ASX:TRE) reported that its airstrip was nearing completion and that operational preparations, including appointments of key personnel, were progressing. The mining contractor was already on site, with mining activities scheduled to begin in early 2027.

Funding Arrangements and Financial Position

The June 2026 quarterly report recorded A$73.5 million in cash and equivalents at 30 June 2026. After that quarter, Toubani Resources (ASX:TRE) executed binding documentation for a US$160 million gold stream and announced a fully underwritten A$70 million equity raising. The October update stated that approximately US$50 million of the gold stream had been received.

Gold-stream financing provides funds during construction in exchange for obligations associated with future production. Toubani also said it was progressing an additional working capital facility, but did not disclose final terms in the October announcement. The distinction between funds received and facilities still being arranged is important when assessing the project’s remaining financing requirements.

Project Timetable and Execution Risks

Toubani Resources (ASX:TRE) identified further construction stages extending into 2027. Process plant platework and electrical deliveries, together with mechanical and electrical installation, were scheduled for the first quarter. Power plant installation and commissioning were planned for the second quarter, followed by process plant commissioning and first gold in the third quarter.

The timetable depends on equipment delivery, construction productivity, commissioning and operating conditions in Mali. Changes to logistics, costs, security or regulatory requirements could affect execution. Although procurement commitments exceeded 70% of project costs by early October, committed expenditure does not eliminate construction or scheduling risk.

An updated Mineral Resource Estimate incorporating Foroko drilling was expected during October 2026. Toubani Resources (ASX:TRE) said the results would inform final pit design and the initial three-year detailed mining schedule. Resource updates and construction milestones measure different aspects of readiness and should be considered separately.

Key Insights

Kobada’s 2026 milestones show a project moving through equipment delivery, civil works and construction financing towards commissioning. The reported engineering completion, stream drawdowns and mobilised workforce establish progress at specific dates, while the 2027 production timetable remains a company target. Subsequent quarterly disclosures will provide further evidence about expenditure, plant completion and operational preparation.

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