Boab Metals Secures A$350M to Fully Fund Sorby Hills, Eyes H2 2027 Production

Funding Milestone and Ownership Consolidation

Boab Metals Limited (ASX, BML) has reached a pivotal milestone by securing over A$350 million in funding to fully finance the development of its flagship Sorby Hills Silver-Lead-Zinc Project in Western Australia's Kimberley region. This capital raise includes a substantial A$236 million debt facility from Merricks Capital and Davidson Kempner, complemented by equity placements totalling A$117 million from professional investors and a heavily oversubscribed Share Purchase Plan for existing shareholders.

In a strategic move to consolidate control, Boab completed the acquisition of the remaining 25% interest in Sorby Hills from joint venture partner Yuguang (Australia) Pty Ltd, bringing its ownership to 100%. This full ownership simplifies project governance and aligns the company’s interests as it transitions from developer to producer.

Project Development and Cost Efficiencies

Following the Final Investment Decision (FID) in December 2025, Boab has commenced early works on site, including construction of access roads and preparation of plant and accommodation pads. These preparatory activities are progressing ahead of schedule, reflecting effective project management and a strong commitment to local industry engagement.

Notably, the company has identified A$25 million in capital cost savings through efficiencies in civil works and the relocation and refurbishment of the DeGrussa Processing Plant. Additionally, the construction timeline is expected to be shortened by six months, accelerating the path to production.

Robust Project Economics Amid Silver Price Surge

The Sorby Hills Project boasts a substantial mineral resource with 47.3 million tonnes containing 1.5 million tonnes of lead and 53 million ounces of silver. The project's economics, based on a Front-End Engineering & Design Study, were already compelling with an internal rate of return of 37% and a net present value of A$411 million at a silver price assumption of US$27.4 per ounce.

Since then, silver prices have surged to over US$110 per ounce, more than quadrupling the original assumption and significantly enhancing the project's potential cash flow and profitability. This price environment positions Boab to capitalise on strong market fundamentals as it advances towards first production.

Financial Position and Next Steps

As of 31 December 2025, Boab held a healthy cash balance of approximately A$89.9 million, underpinning its capacity to fund ongoing development activities. The company anticipates first production of lead-silver concentrate in the second half of 2027, with commissioning and ramp-up activities scheduled through 2026 and 2027.

Boab’s Managing Director and CEO, Simon Noon, highlighted the disciplined approach taken since acquiring Sorby Hills in 2018, emphasising the company’s focus on derisking the project and securing value-accretive opportunities. The transition to a fully funded producer marks a significant inflection point for Boab Metals and its shareholders.