Boab Issues 37.5M Shares at $0.16, Boosting Capital for Sorby Hills
Boab Metals has successfully raised $6 million through a share placement and an ATM set-off, positioning the company to advance its Sorby Hills Project in Western Australia.
- 37.5 million shares placed at $0.16 each
- Additional $680,000 raised via ATM set-off with Acuity Capital
- Funds earmarked for advancing Sorby Hills Project and general working capital
- Placement shares issued under ASX Listing Rules 7.1 and 7.1A
- Boab holds 75% interest in Sorby Hills with option to acquire remaining 25%
Capital Raising Completed
Boab Metals Limited (ASX – BML) has announced the successful completion of a capital raising initiative, issuing 37.5 million new shares at $0.16 each to professional and institutional investors. This placement, conducted under the company’s available placement capacities, is expected to inject approximately $6 million before costs into Boab’s coffers.
In addition to the placement, Boab utilised its at-the-market (ATM) subscription agreement with Acuity Capital to raise a further $680,000 through the set-off of 4.25 million collateral shares. This strategic move reduces the number of shares Acuity Capital must return upon termination of the ATM agreement, while providing Boab with additional working capital.
Strategic Focus on Sorby Hills
The capital raised is earmarked primarily to advance the Sorby Hills Project, a significant base metals development located in Western Australia’s East Kimberley region. Situated just 50 kilometers from Kununurra and with access to existing infrastructure including sealed roads and port facilities at Wyndham, Sorby Hills is well positioned for expedited development.
Boab currently holds a 75% stake in Sorby Hills, with the remaining 25% owned by Henan Yuguang Gold & Lead Co. Ltd. The company also holds an option to acquire Yuguang’s interest upon reaching a Final Investment Decision, a milestone that could consolidate Boab’s control over the project and potentially enhance its valuation.
Implications for Investors and Market
Managing Director Simon Noon expressed optimism about the capital raising, highlighting the company’s strengthened position to progress Sorby Hills. While the funds will also support general working capital needs, the focus remains on delivering positive developments from the project, which could be a catalyst for Boab’s share price and investor confidence.
Investors will be watching closely for updates on project milestones and any decisions regarding the acquisition of the remaining interest from Yuguang. The dilution impact from the placement is balanced by the potential value creation from advancing a project with established infrastructure and permitting.
Bottom Line?
Boab’s fresh capital injection sets the stage for critical progress at Sorby Hills, with investor eyes fixed on upcoming project milestones and strategic ownership moves.
Questions in the middle?
- When will Boab make a Final Investment Decision to potentially acquire Yuguang’s 25% stake?
- How will the recent share placement affect Boab’s share price and shareholder dilution in the near term?
- What are the specific development milestones and timelines for the Sorby Hills Project following this capital raise?
