A two-tranche placement for $50 million is set to give Boab Metals (ASX:BML) the funds needed to “rapidly advance” its Sorby Hills silver-lead project in Western Australia, and close out a processing plant acquisition at the same time.
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Boab has this week secured firm commitments for the $50M placement, with the selling point of the issue being that it will fund early developments.
There’s plenty on the docket for Boab now that the coffers are full, including buying up the last 25% share in Sorby Hills, closing out payments on the DeGrussa plant acquisition, and just having cash for “general working capital.”
“[These] funds raised will allow us to rapidly advance the Sorby Hills project with early development works, alongside acquiring the remaining 25% of the asset,” the company’s managing director, Simon Noon, said.
The plan, Mr Noon explained, is to meet with debt providers before Christmas to seal obligations regarding the DeGrussa processing plant, too.
“We look forward to putting investors’ funds to work,” the Boab chief added.
The $50M is broken down into two tranches, which together make up 125 million new shares being issued at 40cps. (That’s an 11.1% discount on the Aussie company’s five-day volume-weighted average price).
Boab will get its hands on $5 million in cash in the first tranche; the second is subject to shareholder approval at Boab’s annual general meeting in November.
That second pile into the kitty will be what gives Boab the paying power to completely control Sorby Hills. The explorer has an option to buy the last 25% from Henan Yuguang Gold and Lead Co. by December 31, 2025.
BML shares have slipped -4% on today’s issue news.
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