Toubani Resources nears final investment decision for Kobada Project
Toubani Resources is progressing towards a final investment decision (FID) for the Kobada Gold Project in Mali, following a key agreement with the State of Mali under the 2023 mining code. This agreement has provided a clear development pathway and enhanced regulatory certainty for the project. As a result, select project financing parties have begun due diligence after entering a data room to assess investment opportunities.
The company, which currently has a market capitalization of $48 million, is also advancing its environmental and social impact assessment (ESIA) work, with approval expected in the third quarter of 2025. Additionally, Mali’s Ministry of Environment is scheduled to visit the project site in early April as part of the approval process.
Shares
Toubani has also completed planning for early engineering activities and upcoming drilling campaigns at the Kobada Project. Under the terms of its agreement with the Malian government, ownership of the project will be split, with Toubani holding 65% through its subsidiary, Toubani Resources Mali, while the State of Mali retains a 35% stake. This government share includes a 10% free-carried interest, a 20% additional paid interest, and a 5% interest reserved for national investors. The agreement also includes plans to transfer the mining license to a newly formed joint operating entity, Mines de Kobada, which is expected to further de-risk the project and facilitate its development.
Following the adoption of Mali’s 2023 mining code, Toubani has updated its Definitive Feasibility Study, initially completed in October 2024. The study estimates that, at a gold price of US$3,000 per ounce, the Kobada Gold Project will achieve a post-tax net present value (NPV) of $951 million and an internal rate of return (IRR) of 78.9%. Additionally, once production begins, the project is projected to have a post-tax payback period of just 1.25 years. Managing Director Phil Russo highlighted that the revised fiscal terms strengthen the project’s economic outlook, with anticipated annual operating cash flow exceeding US$220 million at current gold prices.
Russo also emphasized that aligning the interests of all stakeholders through the partnership with the Malian government sets a strong foundation for the project’s long-term success. With a structured pathway in place, Toubani is intensifying its efforts on project readiness, including advancing ESIA approvals and securing financing. The company remains committed to maintaining a strong social license to operate in Mali, prioritizing sustainable development and fostering strong community relationships. Positioned in one of Africa’s largest gold-producing nations, the Kobada Gold Project has the potential to become a significant contributor to Mali’s mining sector, which accounted for 105,000 tonnes of gold production in 2023.
“For Toubani, securing and maintaining a strong social licence to operate in Mali is paramount. Our commitment to sustainable development and our deep-rooted relationships in the region further reinforce our confidence in unlocking Kobada’s full potential.”
Toubani Resources is focused on developing West Africa’s next gold mine with its oxide-dominant Kobada Gold Project. The Kobada Gold Project is located in southern Mali, Africa. According to the World Gold Council, Mali is the second largest gold producer in Africa, accounting for 105,000 tonnes as of 2023.
