Toubani Resources Inc announced that it has lodged a prospectus with the Australian Securities and Investments Commission for a proposed dual listing of its shares on the Australian Securities Exchange (ASX).
The gold project developer said it will offer between 27.5 million and 32.5 million CHESS Depositary Interests over common shares in the capital of the company (CDI (NYSE:CDI)s), at an issue price of A$0.20 per CDI, for gross proceeds to Toubani of between A$5.5 million and A$6.5 million.
The company noted that net proceeds raised pursuant to the ASX dual listing will be used for undertaking systematic exploration activities on Toubani’s Kobada project in Mali, with the aim of discovering, growing and ultimately developing an economic mineral deposit, and undertaking project development and construction.
READ: Toubani Resources encouraged by Kobada Est area drilling at its Kobada gold project in Mali
It added that each CDI will represent a beneficial interest in one company common share.
The offer is expected to open on September 19, with trading expected to begin on the ASX on or around October 24.
Leading Australian resource brokers Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited and Foster Stockbroking Pty Ltd have been appointed as Lead Manager and Co-Lead Manager, respectively, for the ASX listing process, according to the company.
The managers will receive a capital raising fee of 6% of the total amount raised under the offer, to be paid in cash upon the issue of CDIs under the prospectus and will receive between 2,909,883 and 3,034,883 options depending on the final size of the offer.
One-third of the issued manager options will have an exercise price of A$0.20 (C$0.18), one-third will have an exercise price of A$0.28 (C$0.25) and one-third will have an exercise price of A$0.30 (CAD$0.27), Toubani said.
Each of the manager options will have an expiry date of three years from the date of issue.
Toubani Resources is focused on building Africa's next mid-tier gold producer and its main asset is the Kobada project in southern Mali, which is in an advanced stage having completed the 2021 definitive feasibility study and is targeting gold production of 100,000 ounces (oz) per annum.
As well as the initial Kobada gold project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering the potential for an increase in resource, it says.
Contact Sean at sean@proactiveinvestors.com