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Boab Metals (ASX:BML) has seen its share price jump +8% in Thursday morning trades as the company revealed its locked in binding commitments for project financing of its Sorby Hills base metal and silver project in WA.
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Now effectively backed by Merricks Capital and Davidson Kempner Capital Management to the tune of A$236M in the form of a debt facility, shares jumped on Thursday as the market liked what it heard.
At least one HotCopper user describing the project as ‘locked in.’ With the financing agreement being binding, it’s not hard to gauge where investor enthusiasm is coming from. Especially because it’s non-dilutive funding, too.
“Securing this substantial binding commitment from Merricks Capital and Davidson Kempner is a transformative milestone for the Company and a strong endorsement of the Sorby Hills Project, following a rigorous and thorough due diligence process,” Boab Metals’ CEO Simon Noon said.
“Importantly, the clean debt structure limits shareholder dilution and allows investors to retain full exposure to further silver price upside and associated Project cashflow.”
A Final Investment Decision (FID) is locked in for execution before January 1 of 2026 with the first drawdown from the facility anticipated to clock over in the second half of the next calendar year.
A tender offer to dismantle and rebuild the DeGrussa processing plant will be issued in the coming weeks, the penultimate tickbox before FID.
BML last traded at 42.5cps.
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Disclaimer: HotCopper had a commercial relationship with BML at the time this article was crafted and published.
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