Kobo Resources to raise up to $3 million for gold exploration

QUEBEC CITY - Kobo Resources Inc. (TSX.V:KRI), a $26.4 million market cap exploration company trading at $0.23 per share, announced plans to launch a non-brokered private placement to raise up to $3 million to fund its gold exploration activities in Côte d’Ivoire.

The company intends to issue up to 10 million units priced at $0.30 each, with each unit consisting of one common share and one-half common share purchase warrant. Each full warrant will allow holders to purchase one common share at $0.55 for a 24-month period, according to a press release statement. InvestingPro analysis reveals the company is currently burning through cash quickly, making this financing crucial for its operations.

Kobo plans to use the proceeds to expand exploration at its Kossou Gold Project in the second half of 2025, focusing on three main targets: the Road Cut Zone, Jagger Zone, and Kadie Zone. The funds will also support preliminary metallurgical work, ongoing soil geochemical surveys, trenching activities, and exploration at the Kotobi research permit.

"After the completion of the diamond drilling program in 2024 and 2025, we look forward to expanding our exploration efforts at our Kossou Gold Project in the second half of 2025," said Edward Gosselin, CEO and Director of Kobo.

The offering is expected to close in multiple tranches, with the first closing anticipated around August 28, 2025, and the final closing by September 5, 2025. All securities issued will be subject to a four-month statutory hold period in accordance with Canadian securities laws. While the company maintains a healthy current ratio of 3.76, InvestingPro data shows its overall financial health score remains weak, with six additional key insights available to subscribers.

The transaction requires approval from the TSX Venture Exchange. The company noted that the securities have not been registered under the U.S. Securities Act and cannot be offered or sold to persons in the United States without registration or an exemption.

Kobo’s Kossou Gold Project is located approximately 20 km northwest of Yamoussoukro, the capital city of Côte d’Ivoire, adjacent to an established gold mining operation with processing facilities. According to InvestingPro metrics, while the company maintains strong liquid assets exceeding short-term obligations, its current valuation appears stretched based on Fair Value analysis.

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