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AFRICA

Toubani pivots to the ASX

by Fraser Palamara

oubani Resources Inc chief executive Danny Callow says significantly progressed. The exploration project contains a
Twaning interest from North American funds encouraged 1.7 moz @ 0.86 g/t gold measured and inferred resource, a
the TSX-V listed explorer to pursue a dual listing on the ASX. 1.43 moz @ 1.06 g/t inferred resource and a 1.23 moz @ 0.87
“We’ve been on the Canadian exchange for a long time,” g/t proven and probable resource.
Callow told GMJ. “We’ve seen a drop off in accessible Kobada has also already undergone feasibility studies and
investment or cash available on that side and over the last holds a valid mining licence until 2045. Toubani will spend the
two years, our story seems to have attracted a lot of attention IPO funds over the next year on infill drilling to lift Kobada’s
down in Australia.” reserves and resources.
Toubani, a West African gold explorer, began trading on the Callow said the advanced nature of Kobada put the company
ASX at 20c/share in November after raising $6.5 million. in a “unique” position to sustain interest from Aussie investors
Company shares on the Toronto exchange have struggled as the company got to work.
over the past six months to break past a $C0.20 valuation. “We’ve got a fascinating story here where we already have
Callow felt ASX investors would provide a better judgement 3.2 moz, which in many cases would be considered enough
for Toubani’s flagship Kobada gold project in Mali. to get going,” he said. “Apart from the resource, we also have
“The Australian investor market is a lot more savvy when a BFS in place, showing compelling economics.
it comes to understanding West Africa and gold,” he said. “We’re in this unique position as while we are very focused
“We’ve certainly seen a much stronger showing of West on growing the exploration ounces over the next couple of
African gold stocks on the Australian exchange than any other years, when we do get to a position where the shareholders
exchange worldwide. and board believe we can move pretty quickly in taking this
“[Dual listing] was a fairly logical step and as we’ve been from exploration through to development and construction. I
putting the bookbuild together for this, there’s been significant think that’s quite a unique selling proposition we have over a
support from Australian investors on this story.” pure exploration play.”
For a project debuting on the ASX, Kobada is already Toubani will focus the drill bit to the northern side of its
tenements, where Callow is confident of replicating success
seen by the AIM-listed Cora Gold in uncovering higher grades.
“I think we have an opportunity to improve the grade as we
move more to the north on the property,” he said. “That’s really
backed up by our neighbours Cora Gold, who are effectively
exploring the same shear zones as us, but at a slightly higher
grade.
“I think our exploration strategy will help give flexibility for
when we do bring this mine into production…the flexibility to
target high-grade areas and maybe bring on production in a
different way, that will put us in a position in a couple of years
to mine those higher grades and potentially more ounces.”
Kobada’s feasibility study delineated 1.2 moz gold produced
at AISC of $US972/oz for a NPV of $US355 million and IRR of
37.6% with 2.3 years payback. These numbers were crunched
using a gold price of $US1,750/oz. At the time of print, prices
on the spot market were trading slightly higher.
Heading into 2023, Callow was confident of an Australian-
backed re-rating of the Kobada project once the company hits
the bourse.
“This has been a about a 5-6 month journey to move to this
listing,” he said. “I’m seeing investors that certainly understand
Neighbouring gold developers to Toubani in Mali include Marvel the value accretive part of this, and I really hope that as we
Gold Ltd, Resolute Mining Ltd and B2Gold Corp move forward and generate the news flow, we will start to see
us rerate to a level that certainly is aligned with our peers.”

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