Toubani Resources raises $10 million in placement to advance Kobada Gold Project
Toubani Resources Ltd (ASX:TRE) has secured firm commitments to raise $10 million in a two-tranche placement with funding underpinning the company’s dual-track strategy to drive the Kobada Gold Project to shovel-ready status and pursue resource growth opportunities across its tenure.
The placement offer price of A$0.17 a share represents a 5.6% discount to the last closing price of Toubani and a 10.1% discount to the 10-day volume weighted average price (VWAP).
In an endorsement of the company and its assets, a fund under Paradice Investment Management Pty Ltd has committed to subscribe for new shares in the placement which will result in a pro-forma holding of 9.9% of Toubani shares on completion of the offer.
Toubani says it has also received “significant support from several Australian specialist resources fund managers alongside existing and new institutional and retail investors”.
New high-quality institutional investors
"We are humbled by the support received from existing and new shareholders as we welcome several new high-quality institutions to Toubani,” Toubani managing director Phil Russo 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.”
Company directors Matt Wilcox, Scott Perry and Phil Russo have subscribed for a total of 1 million shares under the placement, subject to shareholder approval.
Details of the placement
TRE will funnel the fresh capital into:
The placement will be issued in two tranches:
Source: https://www.proactiveinvestors.com.au/