Boab Secures $346 Million to Launch Sorby Hills Silver-Lead Mine by H2 2027
Boab Metals has approved the Final Investment Decision for its Sorby Hills Silver-Lead Project, fully funding construction and targeting first production in the second half of 2027.
- Final Investment Decision approved for Sorby Hills Project
- Raised A$110 million equity and secured A$236 million debt facility
- Early works underway with key contracts to be awarded in early 2026
- First concentrate production targeted for H2 2027
- Transitioning from developer to base and precious metals producer
A Defining Milestone for Boab Metals
Boab Metals Limited (ASX, BML) has taken a decisive step forward by approving the Final Investment Decision (FID) for its Sorby Hills Silver-Lead Project in Western Australia's East Kimberley region. This move marks a pivotal transition from project development to construction and eventual production, underscoring years of meticulous technical and financial groundwork.
With a robust capital structure secured, comprising A$110 million raised through equity markets and a binding A$236 million project finance debt facility, Boab is well positioned to advance rapidly. The company’s leadership emphasizes disciplined capital management and execution certainty as it moves into this next phase.
Project Development and Timeline
Early works have already commenced onsite, setting the stage for camp refurbishment and bulk earthworks. The company anticipates receiving key regulatory approvals in the first quarter of 2026, maintaining momentum on its construction schedule. Contract awards for the processing plant and mining operations are expected in early to mid-2026, with dismantling of the DeGrussa plant slated to begin around March.
Boab aims to deliver first concentrate production by the second half of 2027, a timeline that reflects both ambition and confidence in the project's readiness. The Sorby Hills Project benefits from excellent infrastructure, including sealed roads facilitating concentrate transport to Wyndham Port, approximately 150 kilometers away.
Strategic Positioning and Community Impact
Managing Director and CEO Simon Noon highlighted the company’s commitment to building a long-life, low-risk operation that not only generates shareholder value but also delivers lasting economic and social benefits to the East Kimberley community. Boab’s 75% ownership stake, with an option to acquire the remaining 25% from Henan Yuguang Gold & Lead Co. Ltd. by year-end, adds an additional layer of strategic flexibility.
This transition positions Boab Metals to capitalize on supportive market fundamentals for silver and lead, commodities that remain in demand globally. The company’s clear focus on capital discipline and execution certainty will be critical as it navigates the complexities of construction and commissioning.
Looking Ahead
Shareholders and market watchers can expect a steady stream of updates throughout 2026 as Boab advances construction and explores project optimisation opportunities. The company’s roadmap suggests multiple potential catalysts that could unlock further value as it moves closer to commercial production.
Bottom Line?
Boab Metals’ bold move to fully fund and fast-track Sorby Hills sets the stage for a transformative 2027 production debut.
Questions in the middle?
- Will Boab exercise its option to acquire the remaining 25% interest in Sorby Hills before year-end?
- How will global silver and lead market dynamics influence project economics upon production start?
- What are the key risks in the construction phase that could impact the 2027 production timeline?
