LONDON: Boab Metals Limited (ASX: BML) has executed an option agreement with joint venture partner Henan Yuguang Gold & Lead Co. Ltd to acquire their 25% interest in the Sorby Hills Lead-Silver-Zinc Project, located in the Kimberley Region of Western Australia.

Boab Managing Director and CEO, Simon Noon, stated: “Yuguang has been a committed partner over the past 6 years of Boab’s involvement in Sorby Hills joint venture. Their support during this period has allowed us to effectively grow the Resource and complete high-quality Feasibility Studies and associated work on the Project.

With the Project now in an advanced development state, the option agreement provides Boab with a clear runway to present Sorby Hills to project financiers on the basis that it will be 100% owned by Boab Metals. We are confident of reaching a Final Investment Decision during the option period and subsequently acquiring 100% of the Project.”

Yuguang made the following statement on the agreement: “Our joint venture relationship with Boab to date has been positive and productive. The agreement we have struck is reflective of this co-operation and provides a new pathway to advance Sorby Hills toward a Final Investment Decision. We look forward to continuing to work with Boab throughout the option period and beyond and ultimately seeing Sorby Hills Background on the Sorby Hills Project

On 6 June 2024, Boab released the results of a Front-End Engineering & Design Study (“FEED Study”) on the Project showing strong pre-tax economics including C1 operating costs of US$0.36/lb payable Pb (incl. a net Silver credit of US$0.37/lb payable Pb), NPV8 of A$411M, IRR of 37%, A$778M free cash flow, and an average annualised EBITDA of A$126M. Pre-production capital costs are estimated to be A$264M.