Boab Metals Limited announcement on Sorby Hills project

Boab Metals Limited (ASX:BML) has executed an option agreement with joint venture partner Henan Yuguang Gold & Lead Co. Ltd to acquire their 25% interest in the Sorby Hills Lead-Silver-Zinc Project located in the Kimberley Region of Western Australia. The agreement allows Boab to increase its current 75% interest in the Project to 100% and provides full control over joint venture budgets and work programs during the option period. The option is subject to Boab reaching a Final Investment Decision (FID) on the Sorby Hills Project within the next 12 months.

Executive commentary on Sorby Hills project agreement

Yuguang has been a committed partner over the past 6 years of Boab's involvement in Sorby Hills joint venture. Their support during this period has allowed us to effectively grow the Resource and complete high-quality Feasibility Studies and associated work on the Project. With the Project now in an advanced development state, the option agreement provides Boab with a clear runway to present Sorby Hills to project financiers on the basis that it will be 100% owned by Boab Metals. We are confident of reaching a Final Investment Decision during the option period and subsequently acquiring 100% of the Project.

Summary of Boab Metals' announcement on Sorby Hills project

Boab Metals Limited has successfully executed an option agreement to acquire Yuguang's 25% interest in the Sorby Hills Lead-Silver-Zinc Project, increasing its ownership to 100%. The agreement provides Boab with full control over joint venture budgets and work programs during the option period, subject to reaching a Final Investment Decision within the next 12 months. The Company is in advanced discussions with preferred offtake parties and potential project financiers based on having the option to acquire 100% ownership of the Project and the Sorby Hills concentrate. Boab's recent results of the Front-End Engineering & Design Study on the Project have shown strong pre-tax economics, indicating a positive outlook for the Sorby Hills Project.