Boab Metals Raises A$50M at A$0.40 to Advance Sorby Hills Project
Boab Metals has successfully raised A$50 million through a two-tranche placement to fund key development milestones at its Sorby Hills silver-lead project, including asset acquisitions and early works.
- A$50 million placement secured via two tranches
- Funds to advance Sorby Hills project development and acquisitions
- Placement priced at A$0.40 per share, discounted to recent VWAP
- First tranche of A$5 million issued immediately, second tranche subject to shareholder approval
- Debt financing discussions targeted for completion in Q4 2025
Capital Raise to Propel Sorby Hills Forward
Boab Metals Limited (ASX – BML) has announced a successful capital raising effort, securing A$50 million through a two-tranche placement aimed at accelerating the development of its Sorby Hills silver-lead project in Western Australia. The funds will support early development activities, the acquisition of the remaining 25% interest in the project, and the purchase of the DeGrussa processing plant.
Placement Structure and Pricing
The placement involves issuing 125 million new shares at A$0.40 each, representing discounts ranging from 2.3% to 11.1% relative to recent volume-weighted average prices. The first tranche, raising A$5 million, will be completed under existing placement capacity, with shares expected to be issued by late October. The larger second tranche, raising A$45 million, awaits shareholder approval at the company’s November annual general meeting.
Strategic Use of Funds
Boab Metals plans to deploy the capital to fast-track early development works at Sorby Hills, secure full ownership by acquiring the remaining 25% stake currently held by Henan Yuguang Gold & Lead Co. Ltd, and fund the final investment decision payment for the DeGrussa plant acquisition. This integrated approach aims to streamline project advancement and enhance operational control.
Investor Confidence and Next Steps
Managing Director Simon Noon expressed strong investor support, highlighting demand exceeding the funds sought and welcoming new institutional investors. The company is also progressing discussions with debt providers, targeting finalisation in the current quarter, which could further bolster the project’s financing structure. Market watchers will be keenly observing the AGM outcome and subsequent developments at Sorby Hills.
Bottom Line?
Boab Metals’ capital raise sets the stage for a pivotal phase at Sorby Hills, with shareholder approval and debt financing poised to shape the project’s trajectory.
Questions in the middle?
- Will shareholders approve the second tranche at the upcoming AGM?
- What are the terms and timeline for the anticipated debt financing?
- How will full ownership of Sorby Hills impact project economics and timelines?
