Boab Metals inks major agreements

Boab Metals (ASX:BML) has made significant strides in the development of its Sorby Hills Lead-Silver-Zinc Project in Western Australia. The company has executed a binding offtake agreement with Trafigura Asia Trading Pte. Ltd. for lead-silver concentrate and a binding term sheet for a US$30 million prepayment facility. These agreements are crucial for the construction and development of the project.

Details and future outlook of Boab Metals' strategy

Boab Metals has secured a US$30 million prepayment facility and an offtake agreement with Trafigura for its Sorby Hills Project. The prepayment facility, with an interest rate of SOFR + 5% over five years, is aimed at supporting the project's construction and development. Trafigura will purchase 75% of the lead-silver concentrate if financial closure is achieved. The Sorby Hills Project, located near Kununurra, holds significant mineral resources, and Boab Metals is exploring additional financing options to minimize shareholder dilution. The company is actively seeking further debt financing to reach a final investment decision, with potential cost reductions being considered, including the acquisition of the DeGrussa process plant. Boab Metals' strategic partnerships and financial planning efforts underscore their commitment to developing Sorby Hills.

Executive insights on strategic agreements

The agreements with Trafigura are pivotal for advancing the Sorby Hills Project. They reflect robust interest from the global market and are a cornerstone of our financing strategy.