- Boab Metals (BML) has received a letter of support from Export Finance Australia confirming it will consider financially supporting Boab’s Sorby Hills Project
- The letter follows a preliminary review, but confirmation is subject to further due diligence and a credit assessment
- Of course, the letter does not constitute a commitment to provide debt financing, and there is no certainty that an agreement will be reached between the parties
- Boab is now in discussions with two government financing bodies, having previously progressed to the due diligence stage of the Northern Australia Infrastructure Facility’s (NAIF) debt financing approval process
- Boab Metals is in the grey, last trading at 39 cents
Boab Metals (BML) has received a letter of support from Export Finance Australia confirming it will consider financially supporting the Sorby Hills Project in Kununurra, WA.
Boab owns a 75 per cent interest in the lead-silver-zinc project, which the company says is edging closer to development following drilling success, during which 44.1 megatonnes of 4.5 per cent lead equivalent and 0.5 per cent zinc were returned.
Export Finance Australia (EFA) is the government’s export credit agency. It provides solutions to drive sustainable growth through loans, bonds and insurance options.
The letter is the first milestone in Boab’s engagement with EFAto develop and finance the Sorby Hills Project. The letter was received following a preliminary review, with confirmation subject to further due diligence and a credit assessment.
Boab is now in discussions with two government financing bodies, having previously progressed to the due diligence stage of the Northern Australia Infrastructure Facility’s (NAIF) debt financing approval process.
“Sorby Hills is on track to become a significant mineral export project that will deliver material economic benefits to the Kimberley Region of Western Australia,” said Boab Managing Director and CEO, Simon Noon.
“The Letter of Support from Export Finance Australia creates enormous opportunity for Boab to attract competitively priced and structured project debt finance. We are particularly pleased with the potential for Export Finance Australia and NAIF to work collaboratively with our financial advisers on the proposed financing for the Project”.
The letter itself, however, does not constitute a commitment to provide debt finance, and there is no certainty that an agreement will be reached between the parties.
Despite this, the company says it feels optimistic about its future with EFA.
“We look forward to working with Export Finance Australia as we progress toward a decision to mine in Q1 of 2022.”
Boab Metals is in the grey, last trading at 39 cents at 10:05 am AEDT.