AFG Bank is in discussions to provide up to $40 million in financing for the Kobada Gold Mine in Mali, a move that would help complete the funding package for the project. The proposed senior secured debt facility would support Australian mining company Toubani Resources as it advances the mine toward production, with first gold targeted in the third quarter of 2027.
According to Toubani Resources, the loan would be arranged through a banking syndicate led by AFG Bank and would complement the company’s existing financing plans. These include a $160 million gold streaming agreement with Singapore-based Eagle Eye Asset Holdings and an ongoing $48 million equity raise, providing the financial resources needed to develop the project.
The company expects the first drawdown under the proposed debt facility during the third quarter of 2026. Toubani had previously explored a similar financing arrangement with Coris Bank but has decided not to pursue that option due to extended approval timelines.
The Kobada Gold Mine received its final investment decision in March and is expected to produce an average of 162,000 ounces of gold annually over an estimated 9.2-year mine life. If development proceeds as planned, the project will contribute to Mali’s gold output at a time of strong global gold prices.
The project is being developed under Mali’s 2023 Mining Code, which allows the government to increase its ownership stake in mining projects to as much as 35%, including a 5% allocation for domestic investors, alongside royalties and other taxes. Construction activities are already underway, with more than 500 people currently employed at the Kobada site, although the company has not disclosed the number of local workers.
If finalized, the financing would further strengthen AFG Bank’s presence in Mali’s mining sector while supporting one of the country’s upcoming gold production projects.
