Boab Metals Pushes Sorby Hills Option to End-2025 with $30M Trafigura Prepayment
Boab Metals has extended its option to acquire full ownership of the Sorby Hills Project to the end of 2025, while locking in critical commercial agreements and environmental approvals that pave the way for a final investment decision.
- Option agreement extended to 31 December 2025
- Binding offtake contract and US$30M prepayment secured with Trafigura
- Sale and Purchase Agreement for DeGrussa Processing Plant with Sandfire Resources
- Key environmental approvals received under EPBC Act
- Final Investment Decision anticipated in Q4 2025
Extension of Option Agreement
Boab Metals Limited has announced a 12-month extension to its option agreement with Henan Yuguang (Australia) Pty Ltd, pushing the deadline to acquire the remaining 25% interest in the Sorby Hills Project to 31 December 2025. This extension provides Boab with additional time to complete essential workstreams ahead of an expected Final Investment Decision in the fourth quarter of 2025.
Strategic Commercial Agreements
Since entering the original option agreement, Boab has made significant strides in de-risking the project. Notably, the company secured a binding offtake contract and a US$30 million prepayment term sheet with global commodities trader Trafigura. This deal confirms the marketability of Sorby Hills’ concentrate product, a critical milestone for project viability.
Additionally, Boab signed a Sale and Purchase Agreement with Sandfire Resources for the DeGrussa Processing Plant. The plan to relocate and reuse this existing plant at Sorby Hills is a strategic move that substantially reduces execution risk and capital expenditure, enhancing the project’s overall feasibility.
Environmental and Regulatory Progress
Environmental approvals have also been secured, with Boab recently obtaining key state and federal clearances, including approval under the Environment Protection and Biodiversity Conservation (EPBC) Act. These regulatory milestones clear significant hurdles for project development and demonstrate the company’s commitment to responsible mining practices.
Next Steps Towards Final Investment Decision
With these foundational elements in place, Boab is now focusing on discussions with potential financiers and finalising remaining regulatory approvals. The company’s ability to exercise its option and acquire 100% ownership of Sorby Hills hinges on successfully navigating these next phases. The extended timeline reflects a prudent approach to ensuring all critical factors align before committing to full project development.
Boab’s progress signals growing confidence in Sorby Hills as a viable base metals project in Western Australia’s East Kimberley region, with logistical advantages such as proximity to sealed roads and Wyndham Port further supporting its commercial potential.
Bottom Line?
Boab Metals’ extended option and strategic agreements set the stage for a pivotal investment decision that could reshape its project trajectory.
Questions in the middle?
- Will Boab secure project financing on favourable terms to proceed with full ownership?
- How will the relocation of the DeGrussa Processing Plant impact project costs and timelines?
- What are the potential risks or delays remaining before the Final Investment Decision?