Boab Metals Advances Sorby Hills with $109M EPC Contract and $236M Debt Facility

Major EPC Contract and Plant Relocation Underway

Boab Metals (ASX:BML) has taken a decisive step forward in its Sorby Hills Silver Lead Project by executing a $109 million Engineering, Procurement and Construction (EPC) contract with GR Engineering Services for the disassembly, refurbishment, and relocation of the DeGrussa Processing Plant. The plant, acquired from Sandfire Resources for A$10 million, is being dismantled at DeGrussa and transported to Sorby Hills for reconstruction and commissioning tailored to Boab’s specifications. This move not only accelerates construction but also leverages existing infrastructure to reduce capital intensity.

Disassembly commenced during the quarter with initial plant components already transported to site in July 2026, accompanied by a ramp-up of GR Engineering staff at Sorby Hills to begin reconstruction. The acquisition included a comprehensive inventory of new spares, further mitigating execution and commissioning risks.

Robust Financing and Operational Foundations

Supporting this infrastructure push, Boab finalized a $236 million syndicated debt facility with Merricks Capital and Davidson Kempner, underpinning project development funding. The first drawdown is expected in the September quarter, coinciding with advancing construction activities. The company also inked a six-year diesel supply agreement with Cambridge Gulf Limited’s subsidiary CGL Fuel, securing a reliable fuel supply chain through Wyndham Port directly to site, complete with on-site storage and dispensing facilities.

Early works including all-weather site access and Stage 1 of the on-site mine camp were completed on budget, while bulk earthworks such as the Evaporation Pond and Tailings Storage Facility are progressing ahead of schedule. These advances demonstrate Boab’s focus on de-risking the construction timeline by opportunistically bringing forward critical activities.

Exploration and Resource Expansion Efforts

Boab has also commenced its Phase IX drilling program aimed at converting resources to reserves and expanding the mine life. The program includes infill drilling around known mineralisation, follow-up on the high-silver Beta Deposit, testing of the Keep seismic target near Sorby Hills, and greenfield exploration at Manbarrum targeting historical zinc anomalies. As of late July, 60% of the drilling was complete with encouraging visual mineralisation and high-grade galena encountered, suggesting potential Reserve growth and extended mine life. These results reinforce the company’s strategy to enhance silver exposure amid a sustained price increase.

Upcoming Milestones and Project Delivery Plan

Looking ahead, Boab plans to complete Stage 2 of the mining camp, award the mining contract, and commence reconstruction of the processing plant at Sorby Hills during the September quarter. A key deliverable will be the release of an updated Project Delivery Plan that incorporates contracted capital and operating costs alongside an enhanced Ore Reserve reflecting the recent technical work and silver price uplift. This plan will provide a refreshed economic outlook and mine life estimate.

Boab reported a cash balance of A$60.2 million at the end of June 2026, reflecting ongoing capital deployment into the project. The company remains on track for first concentrate production in the second half of 2027, a timeline supported by the current pace of construction and financing arrangements.