Boab Metals secures $109M plant contract
- Boab Metals executed an engineering, procurement, and construction contract valued at $109 million with GR Engineering Services for its Western Australia project.
- Shares in the exploration company were trading down 4.76% at $0.38 following the market announcement.
- The transaction enables the relocation, refurbishment, and reconstruction of an existing processing plant to meet production goals by late 2027.
Boab Metals (ASX:BML) has finalised a $109 million engineering contract with GR Engineering Services (ASX:GNG) to redevelop its Sorby Hills Silver-Lead Project in Western Australia.
The agreement follows the completion of Boab Metals' $10 million purchase of the DeGrussa Processing Plant from Sandfire Resources.
"The agreement locks in the key commercial terms, scope, mine planning and production requirements and establishes a clear pathway for mobilisation and commencement of mining activities in early 2027," said Boab Metals Managing Director Simon Noon.
Contract works cover disassembling, refurbishing, and moving the existing DeGrussa facility to the Sorby Hills site ahead of commercial concentrate production targeted for the second half of 2027.
Following the announcement, the Boab Metals share price was down at $0.38.
The Western Australia-focused development company is advancing its flagship Sorby Hills project located 50km from Kununurra in the East Kimberley region.
Boab Metals completed a project financing arrangement for debt facilities of $236 million alongside securing a six-year fuel supply deal to support ongoing development.
