Boab Metals takes full ownership of Sorby Hills project in WA

Boab Metals has exercised its enactment to get 100% involvement successful the Sorby Hills project, gaining implicit power of the silver-lead cognition successful Western Australia (WA).

The institution presently owns a 75% ownership involvement successful the Sorby Hills project.

Boab volition get the remaining 25% involvement from its associated task (JV) partner, Henan Yuguang (Australia), for A$12.5m ($8.26m).

Following the acquisition, Boab volition clasp rights to merchantability implicit 100% of the planned 897 kilo tonnes (kt) of ore from Sorby Hills, which is expected to incorporate astir 18.6 cardinal ounces (moz) of metallic and 575kt of lead.

The Sorby Hills tract lies astir 50 kilometres (km) northeast of Kununurra successful the East Kimberley.

It is the largest undeveloped, near-surface lead-silver deposit successful Australia, with mining leases granted, Environmental Protection Agency (EPA) support secured, and located astir 150km from the Port of Wyndham.

Boab has reached a last concern determination (FID) connected the task and is aiming to commence archetypal accumulation successful the 2nd fractional (H2) of 2027.

Boab managing manager and CEO Simon Noon said: “Yuguang has been a committed spouse implicit the past 7 years of Boab’s engagement successful the Sorby Hills associated venture. Their enactment during this play has been invaluable to progressing the Project to the constituent wherever we person been capable to marque a Final Investment Decision.

“We convey them for this support. With 100% ownership comes the close to woody with 100% of the ore produced astatine Sorby Hills and greater vulnerability for our shareholders to the expanding operating margins being driven by a metallic terms that is much than 100% supra what we assumed successful our FEED Study. Importantly, the funds raised during the 4th person accounted for the completion outgo and 100% of the Project Capex. Therefore, the Project remains afloat funded.”

In summation to the A$12.5m completion payment, Boab volition marque deferred payments to Yuguang of A$5.5m astatine 12 months and A$5m astatine 18 months aft the commencement of ore production.

The transaction is anticipated to adjacent successful January 2026.

All funds secured by the institution during the 4th were raised connected a afloat owned basis. As a result, exercising the enactment volition not necessitate immoderate further funding.

Earlier successful September, Boab and Yuguang had mutually agreed to widen the enactment play for acquiring afloat ownership of the Sorby Hills project.

"Boab Metals takes afloat ownership of Sorby Hills task successful WA" was primitively created and published by Mining Technology, a GlobalData owned brand.

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