Explorer Boab Metals (ASX:BML) has taken full control of Sorby Hills right before a bumper year begins at the project, buying out joint venture partner Yuguang for $12.5 million by activating a long-standing option.
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The consolidation, paid from the company’s coffers, has been a long time coming, with Boab on the front foot to get Sorby Hills operating quickly.
The handover will happen in January, The Market Link understands, when Boab pays the first $1 million chunk. It will be on the hook for a further $5.5M slice in January 2026, before needing to pay the last $5M that next June.
Once the option is all signed off next month, the Australian explorer will then hold 100% rights over selling the forecast 897 kilotonnes of concentrate to be produced at Sorby Hills through next year. That concentrate contains 18.6Moz silver and 575 kilotonnes lead, according to recent prework exploration.
“Yuguang has been a committed partner over the past seven years of Boab’s involvement in the Sorby Hills joint venture. Their support has been invaluable to progressing the project to the point where we have been able to make a final investment decision,” Boab’s director and CEO, Simon Noon, said today.
That quick-paced FID was closed out earlier this week, with Boab wrapping up technical, commercial, permitting, and financing works in November.
“With 100% ownership comes the right to deal with 100% of the concentrate produced at Sorby Hills and greater exposure for our shareholders to the increasing operating margins being driven by a silver price that is more than 100% above what we had assumed in our FEED study,” Mr Noon explained.
The soon-to-be producer is targeting first production at Sorby Hills in late 2027. Between now and then, Boab is working to move the East Kimberley Silver-Lead project from development into construction, then execution.
BML shares have been +5.4% higher through the month.
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