Boab Metals (ASX:BML) predicts “highly competitive” off-take deal for Sorby Hills concentrate

• Boab Metals (BML) has short-listed off-take proposals for its share of the WA-based Sorby Hills lead-silver concentrate project
• Following preliminary soundings with base metal smelters and traders, BML received positive feedback for the concentrate and subsequently began its tender process
• To date, the company says it has received attractive proposals from both international and domestic off-takers
• Managing Director and CEO, Simon Noon, says the responses give the company confidence it will conclude the offtake on “highly competitive” terms
• At pre-market open, shares were trading at 33 cents

Boab Metals (BML) has short-listed off-take proposals for its share of the WA-based Sorby Hills lead-silver concentrate project.

Boab owns a 75 per cent stake in the project, which is located near Kununurra in East Kimberley, with the remaining contributing interest held by Henan Yuguang Gold and Lead Co.

Based on the Sorby Hills pre-feasibility study, the operation is set to process 1.5 megatons of ore per annum from four open pit deposits, producing an average of 81,000 dry metric tonnes of concentrate over the year, containing 50 kilotons of lead and 1.5 million ounces of silver.

This concentrate is planned to be exported from the Port of Wyndham and is forecast to bring in around $2 billion in sales over a 10-year mine life.

Earlier this year, BML conducted preliminary soundings with a number of base metals smelters and traders, from which it said it received positive feedback, indicating significant demand for the lead-silver concentrate.

Following this, the company began a formal, competitive tender process and said it has so far received attractive proposals from international and domestic off-takers.

Managing Director and CEO, Simon Noon, said the company is strongly encouraged by the proposals.

“The strength of responses demonstrates the depth of market demand for our Sorby Hills Lead-Silver concentrate, and gives us every confidence that we will conclude binding offtake on highly competitive terms,” he said.

Boab has shortlisted proponents that provided the strongest proposals, and the tender process to award binding off-take of the concentrate is reportedly on track for completion in the first quarter of next year.

At pre-market open, shares were trading at 33 cents.