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Highlights
- Boab Metals (ASX:BML) has received strong commitments for a share placement of AU$5.5 million.
- The company plans to use the funds to kick start developmental activities at its flagship Sorby Hills Lead-Silver-Zinc Project.
- The company expects to deliver DFS results in the coming weeks and reach a final investment decision in H1 2023.
Boab Metals Limited (ASX:BML) has received firm commitments for a share placement designed to raise AU$5.5 million before costs. The company plans to use the funds to initiate development at its flagship Sorby Hills Lead-Silver-Zinc Joint Venture Project in Western Australia.
Boab holds a 75% interest in the project, which sits adjacent to the regional centre of Kununurra and has access to infrastructure such as existing sealed roads aiding the transportation of concentrate to the facilities at Wyndham Port.
As per the company, the funds will be directed towards:
- Front End Engineering Design (“FEED”) and detailed design of the process plant at the project site. GR Engineering Services (GRES) is the preferred EPC Contractor for the plant as per a proposed preliminary works agreement.
- Commencement of on-site early works for the project area in preparation for initiating the process plant construction following a final investment decision.
- Supporting project financing with the finalisation of independent technical due diligence.
(Source: © 2022 Kalkine Media®, data source: company update, 28 November 2022)
Overview of AU$5.5M share placement
Boab will issue ~19.6 million ordinary shares as part of the share placement. These shares will be ranked equally to the existing ordinary shares on issue.
The company anticipates new share allotment to occur on or around 2 December.
The share price offer of AU$0.28 apiece represents a discount of 13.8% to the closing price of BML shares on 23 November 2022 and 15.2% to the five-day volume weighted average price.
The company has appointed Shaw and Partners Limited as lead manager and bookrunner for the placement, being co-managed by Euroz Hartleys Limited.
Accommodation camp at Sorby Hills site
Boab has also completed the final payment for the 178-room accommodation camp, which has now arrived at Sorby Hills. The 178-room camp will be utilised throughout the project construction and operational phases to house project employees and contractors.
The company highlights this development as a significant de-risking milestone.
Boab remains committed to delivering results from the Sorby Hills definitive feasibility study in the coming weeks and reaching a final investment decision in the first half of 2023.
Stock information - The company's shares were quoting AU$0.300 apiece during the post-noon session on 29 November 2022.
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