The TSXV-listed explorer is hunting for up to A$6.5 million through the issue of CHESS depositary interests valued at 20c each, with the minimum $5.5 million raising being supported by Canaccord Genuity and Foster Stockbroking.

 

The cash will be used to support work at Kobada, where there are measured and indicated resources of 1.71 million ounces grading 0.86 grams per tonne and an inferred 1.43Moz at 1.06gpt.

 

Reserves are 1.12Moz.

 

A prefeasibility study completed last year estimated a US$166 million development could recover 1.2Moz over 16 years.

 

Pre-tax net present value and internal rate of return are estimated at $506 million and 45% respectively. 

 

Operating costs were estimated at $881/oz.

 

A definitive feasibility is ongoing.

 

Toubani suggests the project is a low-cost development with predominantly free-dig operation, requires limited blasting, and processing suggests recoveries of 95% from both oxide and sulphide ores.

 

Previously known as African Gold Group, Toubani has been active at Kobada since 2005, and estimates it has spent C$34 million to date.

 

The project is within the prolific Siguiri Basin, and it just 7km from the border with Guinea.

 

Mali's government has the right to acquire a 20% interest in any development, and will be free-carried for 10%. 

 

Toubani has $1.9 million cash, and wants to use the cash to advance its DFS and to fund more drilling on its nearby Faraba and Kobada Est permits. 

 

The company's board includes former Glencore Africa copper boss Danny Callow as managing director, ex-Eurasian Resources Group chief investment officer Jan-Erik Back as chair, and veteran Australian geologist Doug Jendry and former analyst Tim Kestell as non-executive directors.

 

Its major shareholders include Pala Investments, L1 Capital and Nero Resource Fund.

 

Toubani hopes to list next month.