Boab Metals Advances Sorby Hills with A$236M Debt and Final Approvals

Final Approvals Unlock Full-Scale Construction

Boab Metals (ASX:BML) has cleared the regulatory runway for its Sorby Hills Silver-Lead-Zinc Project, with the Western Australian Government granting both the Works Approval and Mining Development and Closure Proposal during the March quarter. These final green lights allow the company to transition seamlessly from early foundational works to primary construction activities, a crucial step in meeting its target for first production in the second half of 2027.

The regulatory milestone follows a series of approvals that have steadily de-risked the project, including the recent environmental nods that paved the way for earthworks and infrastructure development. With site access secured and foundation pads for the process plant and mine camp now in place, Boab is ramping up its on-the-ground presence.

These developments build on the company’s earlier announcements, consolidating momentum after the final regulatory green light received last quarter.

A$236 Million Syndicated Facility Formalises Funding

Boab Metals has executed a syndicated facility agreement worth A$236 million equivalent, split evenly between Australian dollars and US dollars. The deal with Merricks Capital and Davidson Kempner formalises the binding commitment announced late last year and underpins the project’s development funding.

Notably, the company’s decision to take half the debt in US dollars is a strategic move to align debt servicing with US dollar revenues from concentrate sales, effectively mitigating foreign exchange risk during operations. To manage currency exposure during construction, Boab has also implemented FX hedging arrangements.

The first drawdown of the facility is expected in Q3 2026, supporting the acceleration of construction activities. This financing package complements the company’s strong cash position of A$97.8 million at the end of March, which continues to fund ongoing development and operational readiness.

These financial arrangements echo the terms detailed in the recent A$236 million syndicated loan announcement, reinforcing Boab’s commitment to maintaining a fully funded project.

Construction Progress and Operational Readiness

With early works completed, Boab has now commenced bulk earthworks focused on critical water management infrastructure, including the evaporation pond, mine water settling pond, and tailings storage facility. The company has engaged the same contractor from the early works phase to maintain execution efficiency and reduce mobilisation costs, aiming to complete these earthworks by the end of 2026.

Simultaneously, refurbishment of the mine camp is advancing swiftly, with 50 accommodation units refurbished and installation underway. The camp will accommodate the growing workforce as construction intensifies.

Negotiations for the Engineering, Procurement, and Construction (EPC) contract for the process plant are nearing completion, with a letter of intent issued to the preferred contractor. Preparatory activities, including detailed engineering and design, procurement of long-lead items, and workforce mobilisation planning, are in progress, keeping the commissioning schedule on track for H2 2027. Contractor mobilisation to site is expected imminently in May 2026.

Fuel logistics have also been secured through a six-year diesel supply agreement with CGL Fuel, a subsidiary of Cambridge Gulf Limited, ensuring reliable on-site fuel storage and delivery throughout construction and operations. This deal supports operational resilience and cost predictability as the project scales up.

Boab’s construction cadence and supply chain arrangements position Sorby Hills well for its upcoming milestones.

Resource Expansion and Mining Preparation

Looking beyond construction, Boab is preparing to launch a drilling program in late Q2 2026 aimed at upgrading mineral resources to reserves and expanding silver resources. This includes targeting extensions to known mineralisation previously excluded under lead-focused cut-off grades, potentially unlocking additional silver upside.

Alongside drilling, the company plans to commence its mining contract tender process in Q2, with early mining activities slated for late Q3 2026. The expansion of the project team across Perth and site operations is ongoing to support these activities.

These initiatives suggest Boab is not only focused on delivering its initial production targets but also on enhancing the project’s resource base to underpin longer-term value.