Boab Metals Launches A$5M Fully Underwritten Raise For Sorby Hills

Boab Metals Ltd (ASX: BML) has launched a fully underwritten A$5 million capital raising to progress the Sorby Hills Lead-Silver-Zinc Project in Western Australia.

The capital raising comprises:

  • A$1.7 million share placement to institutional investors (binding commitments received); and
  • A$3.3 million rights issue to eligible shareholders.

Strong project economics

The 75% owned Sorby Hills Lead-Silver-Zinc Project is in the Kimberley Region.

Last year, Boab reached a major milestone by delivering the Sorby Hills Definitive Feasibility Study (DFS) with encouraging results.

The DFS demonstrated strong pre-tax economics including an NPV (net present value) of A$370 million and an average annualised EBITDA of A$119 million.

The open pit production target is estimated to be 18.3 million tonnes at an average grade of 3.4% lead and 39g/t silver.

Offtake arrangements and FEED Study

Boab Managing Director and CEO Simon Noon said: “We are confident of finalising our offtake arrangements and FEED Study over the coming months.

“Whilst modest in size, the capital raising will allow us to effectively leverage the outcome of these milestones into our project financing and project execution workstreams.

Noon added that the funds raised will also support a drilling program, including Boab’s maiden drilling at its Manbarrum Zinc-Silver-Lead Project located 25km east of Sorby Hills.

 

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