Boab Metals (ASX:BML) has exercised its option to acquire a 100% interest in the Sorby Hills Silver-Lead Project in Western Australia, purchasing the 25% stake held by joint venture partner Yuguang (Australia) for $12.5 million.
The acquisition gives Boab full rights to sell all of the project's forecast 897,000 tonnes of concentrate, containing an estimated 18.6 million ounces of silver and 575,000 tonnes of lead.
Boab Managing Director and CEO Simon Noon highlighted Yuguang's contribution over the past seven years, noting their support was key in bringing the project to a final investment decision.
Noon added that full ownership allows Boab to capture the full upside from rising silver prices and enhances shareholder exposure to potential operating margins.
The company has confirmed that recent funds raised cover both the completion payment and 100% of the project's capital expenditure, meaning no additional financing is required.
In addition to the $12.5 million upfront payment, Boab will pay deferred considerations of $5.5 million and $5 million to Yuguang at 12 and 18 months, respectively, following the start of concentrate production, with completion expected in January 2026.
Boab is targeting first production in the second half of 2027.
At the time of reporting, Boab Metals' share price was $0.39.