Boab Metals has come to a mutual agreement with Henan Yuguang to extend the option period for the acquisition of a 100% interest in the Sorby Hills project in Western Australia.

The company owns a 75% interest in the project, with the remaining 25% interest held by Henan Yuguang.

In September 2024, Boab Metals signed a 12-month option agreement to acquire Henan Yuguang’s 25% stake.

The extension to the option agreement facilitates the completion of necessary workstreams before the anticipated final investment decision (FID) in Q4 2025.

Since the initial agreement in September 2024, Boab Metals has made significant progress on the project, including securing a binding offtake contract and $30m (A$45.32m) prepayment terms with Trafigura, which confirms the marketability of the Sorby Hills concentrate.

Additionally, a sale and purchase agreement (SPA) with Sandfire Resources for the DeGrussa processing plant will allow its relocation to Sorby Hills, significantly reducing project execution risks.

The company has also achieved key state and federal environmental approvals, including under the Environment Protection and Biodiversity Conservation Act.

These milestones pave the way for discussions with potential financiers and securing further regulatory approvals necessary for the FID and the project's advancement.

Boab Metals released the results of the Sorby Hills definitive feasibility study in January 2023, outlining an 8.5-year processing period with 18.3 million tonnes (mt) of ore to be processed.

The project is set for an initial production rate of 1.5 million tonnes per annum (mtpa), expanding to 2.25mtpa after one year, yielding an average of 103,000 tonnes per annum (tpa) of concentrate containing 64,000tpa of payable lead and two million ounces per annum of payable silver.

Boab Metals is now focused on securing the financing and regulatory approvals needed to move forward with the project and providing further updates.