Boab Metals has raised A$6 million through a placement to advance its Sorby Hills lead-silver-zinc project, aiming to accelerate pre-development and exploration activities ahead of a final investment decision.
- A$6 million oversubscribed placement completed
- Funds allocated to pre-development, site works, and camp refurbishment
- Placement shares issued at an 11.1% discount to last traded price
- Capital raise frees cash for expanded drilling at the Keep Target
- Progressing toward Final Investment Decision in 2025
Capital Raise to Accelerate Sorby Hills Development
Boab Metals Limited (ASX, BML) has successfully completed a A$6 million placement to sophisticated and institutional investors, marking a significant step forward in advancing its 75% owned Sorby Hills Lead-Silver-Zinc Project in Western Australia's Kimberley region. The oversubscribed placement underscores strong investor confidence, drawing support from both domestic and international funds.
Strategic Use of Funds
The capital raised will be strategically deployed across several key areas, A$1.5 million for pre-development costs, A$1 million for early site establishment, and A$0.5 million to partially refurbish the existing workers’ camp. Additionally, A$0.5 million is earmarked for project finance costs, while the remaining A$2.5 million will bolster working capital, providing financial flexibility to expand exploration activities, including follow-up drilling at the promising Keep Target.
Market Context and Project Momentum
Boab’s Managing Director and CEO, Simon Noon, highlighted the positive market backdrop, particularly the bullish silver market, which complements recent milestones such as the Offtake and Prepayment Agreement with Trafigura and the acquisition of the DeGrussa processing plant from Sandfire Resources. These developments collectively build momentum toward a Final Investment Decision (FID) anticipated later this year.
Share Placement Details
The placement involved issuing approximately 37.5 million fully paid ordinary shares at A$0.16 each, representing an 11.1% discount to the last traded price and deeper discounts to recent volume-weighted average prices. Shaw and Partners led the placement, with Alpine Capital as co-manager. The shares are expected to be allotted on 23 June 2025.
Looking Ahead
With this capital injection, Boab Metals is well-positioned to accelerate pre-development activities and expand its exploration footprint at Sorby Hills. The company’s commitment to unlocking further resource potential, particularly at the Keep Target, signals an active and potentially transformative second half of 2025 for the project.
Bottom Line?
Boab’s latest capital raise sets the stage for critical development milestones and expanded exploration at Sorby Hills.
Questions in the middle?
- When can investors expect results from the expanded drilling at the Keep Target?
- What are the key criteria Boab will use to make the Final Investment Decision?
- How will the acquisition of the DeGrussa processing plant impact project economics?