Toubani Resources (ASX: TRE) Secures A$10M to Advance Kobada Gold Project

Key Highlights:

- Toubani Resources (ASX: TRE) raises A$10 million through a two-tranche placement.

- The funds will accelerate the Kobada Gold Project towards shovel-ready status.

- Paradice Investment Management commits to a 9.9% pro-forma holding.

- The placement priced at A$0.17 per share, a 5.6% discount to the last closing price.

Toubani Resources Ltd (ASX: TRE) has secured A$10 million through a two-tranche placement, bolstered by strong support from institutional and sophisticated investors. The placement, offered at A$0.17 per share, represents a 5.6% discount to Toubani's last traded price of A$0.18 on August 16, 2024, and a 10.1% discount to the 10-day volume-weighted average price (VWAP) of A$0.189.

The funds raised are earmarked to fast-track the Kobada Gold Project in West Africa. Toubani’s dual-track strategy focuses on advancing the project to a shovel-ready status while also pursuing resource growth opportunities across its highly prospective tenure. The capital will be directed towards completing the Definitive Feasibility Study (DFS), advancing post-DFS activities, and initiating further drilling to explore deeper oxide material, particularly below the current average drill-tested depth of 110 meters.

A notable highlight of the placement is the involvement of Paradice Investment Management, which has committed to subscribing for shares, resulting in a pro-forma holding of 9.9% upon completion of the offer. This substantial backing from Paradice and other specialist resource fund managers underscores the strong market confidence in Toubani’s potential.

Toubani’s Managing Director, Phil Russo, expressed gratitude for the overwhelming support from new and existing shareholders, stating, "We are well positioned to advance our compelling West African gold development project and look forward to delivering an updated feasibility study for Kobada in the coming months."

(Source: $TRE ASX Announcement)

The first tranche of the placement will raise approximately A$7.2 million and is expected to settle by August 27, 2024, with the remaining A$2.8 million subject to shareholder approval at an upcoming general meeting in October 2024.

This latest capital raise places Toubani Resources in a strong position to continue its growth trajectory, leveraging its experienced management team and the promising prospects of the Kobada Gold Project.

On the back of today’s ASX announcement, Toubani Resources Ltd (ASX: TRE) shares surged 16.67%, reaching A$0.21 at 2:19 PM AEST, August 21, 2024.

Toubani Resources is making significant strides in its development journey, with the successful A$10 million capital raise marking a pivotal step in advancing the Kobada Gold Project. The strong backing from high-profile investors and the company's clear strategy position Toubani as a noteworthy contender in the gold development sector.