- Boab Metals has completed the acquisition of the Manbarrum project, with all conditions having been met, including the settlement of AU$500,000 in the form of fully paid ordinary shares.
- Strong synergies between Manbarrum and Boab’s flagship Sorby Hills Joint Venture allows the transfer of valuable technical knowledge.
- Boab intends to develop the project over the mid-to-long term, focusing on advancing Sorby Hills into production.
In a significant development, Boab Metals Limited (ASX: BML) has completed the acquisition of the Manbarrum Zinc-Lead-Silver Project, located in the Northern Territory. The Company confirmed that all conditions for the acquisition have been met.
Boab Metals has acquired 100% of the Manbarrum Project, consisting of associated mining leases, exploration licences, mining lease applications and mining information.
Source: BML Presentation, dated 2 August 2021
The acquisition is seen as a strategic step for the company, in light of strong synergies between Manbarrum and Boab’s flagship Sorby Hills Joint Venture in the Kimberley region of Western Australia.
Purchase consideration settled
Boab Metals settled consideration for the purchase through an issue of AU$500,000 to Todd River Metals Pty Ltd in the form of fully paid ordinary shares. The consideration shares are subject to a voluntary escrow period of 12 months.
The transaction with Todd River Metals also consists of a Net Smelter Return (NSR) Royalty of 1.25%, to be paid on future revenue generated from the sale of minerals extracted from the Manbarrum Project.
An Overview of Manbarrum
The Manbarrum Project is located 25km east of Boab’s flagship Sorby Hills Project. Both the projects will be accessible throughout the year via a heavy-duty sealed road, which is currently under construction from the town of Kununurra.
The project consists of 175 km2 of prospective tenements (including two granted mining leases) and covers geology similar to that found at Sorby Hills. It would ensure the technical knowledge be effectively transferred to maximising exploration and resource development potential at the project. Mineral Resources has also been declared at two prospects within the project area.
Moreover, positive results were achieved from CSA Global’s conceptual open pit mining studies completed in 2018 based on an on-site processing facility. The study identifies the opportunity to improve project economics through toll treating at a future plant located at Sorby Hills.
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The Company intends to undertake a series of exploration initiatives at the Manbarrum project over the mid to long term as mentioned in the below image:
Source: Copyright © 2021 Kalkine Media, Data Source: BML ASX update, dated 21 July 2021
BML shares closed the day’s trade on 31 August 2021 at AU$0.380. The Company has a market capitalization of AU$58.32 million.