Boab extends option to secure full ownership of Sorby Hills
ASX-listed Boab Metals has extended its option agreement with Henan Yuguang (Australia) to acquire the latter’s 25% stake in the Sorby Hills lead/silver/zinc project, in Western Australia.
The option, originally signed in September 2024, has now been extended to December 31, 2025 to allow Boab to complete the remaining workstreams ahead of an anticipated final investment decision (FID) in the fourth quarter of next year.
Since executing the agreement, Boab has advanced several strategic initiatives, including securing a binding offtake and $30-million prepayment term sheet with global trader Trafigura, confirming the marketability of Sorby Hills concentrate. The company has also signed a sale and purchase agreement with Sandfire Resources for the DeGrussa processing plant, which is planned to be relocated and reused at Sorby Hills, significantly de-risking execution.
In addition, Sorby Hills has now cleared key state and federal environmental hurdles, most recently receiving approval under the Environment Protection and Biodiversity Conservation Act.
Boab said it was focused on discussions with potential financiers and securing the final regulatory approvals required to support an FID and the exercising of its option to move to 100% ownership of Sorby Hills.
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