Delays in DeGrussa Plant Move Could Test Sorby Hills Timeline

DeGrussa Plant Acquisition Signals Milestone for Sorby Hills

Boab Metals Limited (ASX:BML) is on the cusp of completing its acquisition of the DeGrussa Processing Plant from Sandfire Resources (ASX:SFR), a transaction poised to materially advance the Sorby Hills Silver Lead Project in Western Australia. The deal, valued at A$10 million with staggered payments, will see the dismantling and relocation of a world-class processing facility to Sorby Hills, significantly reducing upfront capital expenditure and mitigating equipment procurement risks.

The acquisition follows Boab’s Final Investment Decision late last year and receipt of final regulatory approvals in March 2026, which collectively cleared the path for construction to ramp up at Sorby Hills. The project remains on schedule for first commercial concentrate production in the second half of 2027, a timeline now bolstered by securing this critical processing asset. This progress aligns with Boab’s recent success in securing a substantial A$236 million debt package to fund the development, underscoring the company’s momentum in bringing Sorby Hills to life A$236 million syndicated debt facility.

DeGrussa Plant’s Fit for Purpose Design and Strategic Value

Originally operated by Sandfire as its flagship copper mine from 2011 to 2024, the DeGrussa Processing Plant is well-regarded for its robust infrastructure, including a primary crusher, ball and SAG mills, flotation circuits, and concentrate thickeners. Boab’s due diligence, conducted alongside GR Engineering Services, confirmed the plant’s compatibility with Sorby Hills’ planned flowsheet and targeted 100,000 tonnes per annum concentrate production rate.

Beyond the plant itself, the acquisition includes an extensive inventory of new spares, further de-risking operational startup. Boab’s Managing Director Simon Noon highlighted the value proposition: “The DeGrussa Mine was a world-class asset, and since its cessation in 2024, Sandfire has kept the plant in excellent condition. The acquisition was a clear value adding opportunity.”

Financial Structure and Next Steps in Plant Relocation

The total A$10 million acquisition price breaks down into a A$1.5 million deposit paid in December 2025, a A$6 million payment due upon completion, and a deferred payment of A$2.5 million payable within 12 months of first concentrate sales from Sorby Hills. This structured approach balances upfront capital management with performance-linked incentives.

With all conditions precedent now satisfied, including regulatory approvals and agreed dismantling schedules, Boab is set to begin dismantling the plant at DeGrussa in Meekatharra for transport to Sorby Hills, located 50 kilometres from Kununurra. The project benefits from existing sealed road infrastructure facilitating concentrate transport to Wyndham Port, 150 kilometres away. This logistical advantage complements Boab’s recently secured long-term diesel supply deal, which supports reliable fuel logistics through the project’s construction and operational phases six-year diesel supply deal.