Toubani Resources (ASX: $TRE) raises A$4.0m for Kobada definitive feasibility study

Toubani Resources, Inc (ASX: $TRE) has successfully raised A$3.85 million through a placement of approximately 33.5m new fully paid ordinary shares at A$0.115 per share to sophisticated, professional, and institutional investors. Additionally, Non-Executive Director, Tim Kestell, has subscribed for a total of approximately 1.3m shares in the Placement, subject to shareholder approval. The funds will support the completion of 2024 resource definition drilling, a Mineral Resource update, and Ore Reserve studies, towards the completion of a Definitive Feasibility Study (DFS) for the Kobada Gold Project.

Toubani CEO, Phil Russo, on the successful placement and future prospects

We are delighted with the support received for the Placement from both existing and new investors. The funding enables Toubani to complete the technical work streams necessary to deliver our DFS including updating our Mineral Resource following our highly targeted resource definition drilling, as well as Ore Reserve studies and finally, completion of an increased scale, predominantly oxide and technically simple Kobada DFS. Toubani is at an exciting juncture in our development with our recent drilling serving to remind us of the potential at Kobada and we look forward to defining an attractive gold development asset in a market devoid of development assets, particularly those with the attributes of Kobada.

Toubani Resources' future outlook and use of funds

Toubani Resources has successfully raised A$4.0m to advance the Kobada Gold Project, with a focus on completing the Definitive Feasibility Study (DFS), resource definition drilling, and general working capital. The offer price of A$0.115 per share represents a 14.8% discount to the last closing price of Toubani and 11.9% discount to the 20-Day VWAP. The company aims to define an attractive gold development asset in a market devoid of such assets, particularly those with the attributes of Kobada. The funds will be allocated towards completing the DFS, resource definition drilling, and general working capital, positioning Toubani for future growth and development in the gold sector.