Toubani Resources Ltd (ASX:TRE) has banked $10 million dollars to facilitate development of its Kobada gold project in Mali – particularly through the definitive feasibility study process – with a successful placement which underlined support from specialist resources fund managers.
The placement was undertaken in two tranches, and Toubani has confirmed commitment to raise $10 million from this, with new shares offered at 17 cents each, representing a 5.6% discount to the last closing price, as well as a 10.1% discount to the 10-day VWAP.
Among this, one fund from Australian fund manager Paradice Investment Management Pty is set to take on a pro-forma holding of 9.9% in the company through its committed subscription to new shares.
Toubani added that that directors Matt Wilcox, Scott Perry and Phil Russo had subscribed for shares, with interest also coming from specialist resources fund managers in Australia, as well as existing and new institutional and retail investors.
The funding will go towards both progressing Kobada Gold’s development and Toubani’s efforts to grow its resource holdings across a highly prospective tenture.
Managing Director Phil Russo said the successful placement underscored Toubani’s growing gold story in Africa.
“We are humbled by the support received from existing and new shareholders as we welcome several new high-quality institutions to Toubani,” he said.
“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.
“Toubani’s dual-track strategy of advancing Kobada to shovel-ready status while pursuing resource growth opportunities offers an exciting future for the company and our shareholders.”
Toubani shares have risen on the news, and at 12:17 AEST, they were trading at 20 cents – a rise of 11.11% since the market opened.