Toubani Takes 19.9% Stake in Canadian Gold Explorer Without Spending Cash
Toubani secures strategic 19.9% position in Avanti Gold
Toubani Resources (ASX: TRE) has completed the acquisition of 44.5 million shares in Avanti Gold Corporation (CSE: AGC), representing a 19.9% interest in the Canadian gold explorer. The transaction, which was executed on 17 July 2026, follows the initial announcement on 29 June 2026.
The strategic stake provides Toubani with portfolio diversification whilst the company advances its flagship Kobada Gold Project. The 19.9% holding establishes a meaningful position in a listed exploration company without triggering control transaction requirements typically associated with larger ownership thresholds.
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Transaction consideration structure
Toubani structured the acquisition entirely in scrip, preserving its cash position for core development activities. The company issued 72.9 million TRE shares as consideration and will grant 36.45 million TRE options subject to receipt of applications to the option prospectus filed on 17 July 2026.
| Consideration Component | Amount |
|---|---|
| TRE shares issued | 72.9 million |
| TRE options to be granted | 36.45 million |
| Option exercise price | $0.60 |
| Option expiry | 3 years from issue |
The consideration was structured in scrip (shares and options). The option component consists of 36.45 million Toubani options with an exercise price of $0.60, expiring three years from the date of issue, subject to receipt of applications to the option prospectus.
What is a strategic minority stake?
A 19.9% stake represents a strategic minority position that provides meaningful economic exposure and potential board influence without triggering takeover regulations. In most jurisdictions, ownership thresholds at or above 20% require formal takeover offers or additional regulatory disclosures.
This level of ownership is common among resource companies seeking diversified exposure to exploration upside whilst maintaining focus on core assets. The stake provides Toubani with significant leverage to Avanti’s exploration success without imposing control obligations or operational integration requirements.
For Toubani shareholders, the position offers optionality through exposure to a separate exploration portfolio, complementing rather than competing with the company’s primary development pathway.
Toubani’s development focus remains on Kobada
Toubani’s flagship asset is the Kobada Gold Project, described by the company as Africa’s next large gold development project with oxide-dominant mineralisation. The company’s experienced board and management team has a proven African track record spanning exploration, development and production.
The Avanti investment adds portfolio diversification whilst the primary value driver remains advancing Kobada toward production. The scrip-based structure ensures development capital for Kobada remains intact, with the strategic stake providing complementary exposure to Canadian gold exploration.
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Next steps for Toubani shareholders
The share consideration component of the transaction is complete as of 17 July 2026. The option grant is pending receipt of applications following the filing of the option prospectus on the same date.
- Share consideration issued — complete
- Option prospectus filed — 17 July 2026
- Option grant — pending applications
The transaction execution provides clarity on dilution impact, with the completed share issuance of 72.9 million TRE shares now factored into the company’s capital structure. The option exercise price of $0.60 represents potential future capital if exercised, though the timing and extent of any exercises will depend on future share price performance and holder decisions.
Want to Understand How This Strategic Investment Fits Within Toubani’s Broader Development Strategy?
Toubani has preserved its cash position for Kobada whilst gaining meaningful exposure to Canadian gold exploration through this scrip-based transaction. The 19.9% stake provides portfolio diversification without compromising the company’s primary focus on advancing Africa’s next major gold development.
To explore Toubani’s full project pipeline, development milestones and the strategic rationale behind this Avanti investment, visit the Toubani Resources investor centre. Detailed analysis of the Kobada Gold Project and the company’s growth pathway is available for informed investment decisions.