Boab Metals Completes A$236 Million Syndicated Loan for Sorby Hills

Major Debt Financing Secured for Sorby Hills

Boab Metals (ASX:BML) has crossed a significant milestone by executing a A$236 million syndicated facility agreement to bankroll the development of its Sorby Hills Silver-Lead Project in Western Australia. The financing, arranged by Merricks Capital and Davidson Kempner, is structured with equal tranches in Australian dollars and US dollars, a strategic move to align with anticipated US dollar revenues and reduce currency exposure during operations.

The split facility comprises A$118 million in AUD and US$84.4 million in USD, with the first drawdown expected in the third quarter of 2026. This injection is timed to accelerate on-site construction, which is already progressing well, with the process plant and accommodation camp pads completed as the wet season winds down.

Construction Progress and Production Outlook

Boab’s Managing Director Simon Noon highlighted the importance of the financing in maintaining momentum towards production. With all regulatory approvals secured and groundwork laid, the company is poised to ramp up construction activities aiming for first silver-lead concentrate output in the second half of 2027. This timeline aligns with the recent regulatory green light Boab received, confirming the project’s readiness for full-scale mining operations.

The financing structure’s inclusion of USD tranches is particularly noteworthy. By matching debt repayments with US dollar revenues from concentrate sales, Boab avoids the need for ongoing foreign exchange hedging post-construction, though it plans to hedge currency risk during the build phase. This approach reflects a nuanced risk management strategy tailored to the project’s revenue profile.

Strategic Partners and Financial Advisers

Merricks Capital, an Australian private credit fund under Regal Partners, brings expertise in asset-backed funding across mining and infrastructure, while Davidson Kempner is a global investment management firm with over US$38 billion in assets. Their backing signals strong institutional confidence in Sorby Hills’ prospects.

BurnVoir Corporate Finance acted as financial adviser to Boab Metals in arranging the debt facilities, with legal counsel provided by MinterEllison. The agreement follows a binding commitment announced in late 2025 and is subject to customary conditions precedent before financial close.

This financing milestone complements recent operational preparations, including Boab’s securing of a six-year diesel supply contract to support the project’s ramp-up phase, ensuring logistical stability for construction and commissioning activities. Such arrangements reinforce the company’s methodical approach to advancing Sorby Hills towards commercial production.