Toubani Resources Inc (ASX:TRE, OTC:AGGFF) is adding A$3.8 million to its exploration war chest for the Kobada Gold Project in southern Mali after securing firm commitments from existing and new institutional and sophisticated investors in a fully-subscribed placement.
Funds raised will be allocated towards several key initiatives, including the completion of an optimised definitive feasibility study to further develop the large-scale oxide gold project.
They will also be directed towards an upcoming reverse circulation drill program to convert a significant portion of Kobada’s existing inferred resource.
The company also intends to conduct exploratory drilling at high-priority targets within the region, while the rest of the funds will be channelled towards general working capital and transaction-related expenses.
READ: Toubani Resources completes Kobada resource revision ahead of DFS update
Grateful for support
“We are excited to be moving into this phase of Toubani’s evolution underpinned by 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 of scale,” Toubani chief executive officer Phil Russo said.
“We look forward to surfacing this value and showcasing the attractiveness of Kobada in the months ahead and thank our existing shareholders for their support, while we welcome a number of new shareholders to our register.”
Shareholder meeting
This placement will encompass the issuance of 31,666,667 Chess Depositary Interests (CDIs) at a price of $0.12 per CDI, which is a 14.3% discount to the last closing price on August 25 and a 13.9% discount to the 5-day volume-weighted average price.
The initial tranche of the placement, known as Tranche 1, is set to settle on September 6, with the CDIs to be issued the following day.
A subsequent Tranche 2, involving the issuance of 13,420,151 CDIs to institutional and sophisticated investors, is contingent on shareholder approval to be sought at an upcoming general meeting.
Additionally, shareholders will vote on a proposal by Toubani directors to participate in the placement, subscribing for 2,916,667 CDIs for a total of $350,000.