Strong Demand for Sorby Hills Lead-Silver Concentrate

Boab Metals Limited (ASX: BML) (“Boab” or the “Company”) is pleased to provide this update on its offtake tender process for Boab’s 75% share of the high quality Sorby Hills Lead-Silver concentrate. The balance 25% concentrate production belongs to Boab’s 25% contributing joint venture partner Henan Yuguang Gold & Lead Co. Ltd., one of China’s largest lead smelting and silver producers.

Highlights

• Strong Demand Confirmed for Sorby Hills Lead-Silver Concentrate from Leading Domestic and International Offtakers.
• Offtake Proposals received to date have offered attractive terms and confirmed the high quality of the Sorby Hills Lead-Silver concentrate.
• Shortlisting of proposals has occurred.
• Competitive offtake tender process for the Sorby Hills concentrate is on track for completion in Q1 2022.

Boab Managing Director and CEO, Mr Simon Noon stated:

“We are strongly encouraged by the offtake proposals we have received from a host of international and domestic lead concentrate smelters and traders. The strength of responses demonstrates the depth of market demand for our Sorby Hills Lead-Silver concentrate, and gives us every confidence that we will conclude binding offtake on highly competitive terms.

We look forward to completing this process with our shortlisted offtake proponents in calendar Q1 2022.”

Offtake Update

Earlier this year, Boab conducted a series of preliminary soundings with a number of leading base metals smelters and traders. The purpose of the Preliminary Offtake Soundings was to build relationships between Boab and a range of Tier 1 offtake partners, to receive indicative offtake terms for the concentrate to be produced from Sorby Hills, and to garner feedback to inform the ongoing Sorby Hills Definitive Feasibility Study.

The preliminary soundings were extremely positive, demonstrating significant demand for the Sorby Hills Lead-Silver concentrate, which is of a quality that does not attract penalty element charges based on the detailed Pre-Feasibility Study (“PFS”) concentrate assay specification. Feedback from the preliminary soundings also provided useful insights for the ongoing DFS metallurgical program and Lead market dynamics more generally.

Following these preliminary soundings, Boab commenced a formal competitive tender process for Boab’s share of the Sorby Hills concentrate. Offtake Proposals received to date from leading international and domestic offtakers have offered attractive terms and have confirmed strong demand for the high quality Sorby Hills Lead-Silver concentrate. Proponents providing the strongest proposals have been shortlisted, and the tender process to award binding offtake of the Sorby Hills concentrate is on track for completion in Q1 2022.

The Company intends to provide a further update to the market on the conclusion of this process.

The Board of Directors have authorised this announcement for release to the market.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Simon Noon
Managing Director & CEO
Phone: +61 (0)8 6268 0449 Email: info@BoabMetals.com

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source https://boabmetals.com/blog/strong-demand-for-sorby-hills-lead-silver-concentrate/