Boab Metals Limited (ASX: BML), a Western Australian-based base and precious metals company advancing the fully-funded 100% owned Sorby Hills Silver-Lead Project in the East Kimberley, has announced the successful satisfaction of all conditions precedent for the acquisition of the DeGrussa Processing Plant from Sandfire Resources Limited (ASX: SFR). The completion of the Sale & Purchase Agreement, for use at Boab’s Sorby Hills Silver-Lead Project, is set to occur in the coming days, marking a significant milestone for the company’s flagship project. The total acquisition price for the processing plant stands at A$10.0 million.
The A$10.0 million acquisition price comprises an A$1.5 million deposit paid in December 2025, A$6.0 million payable in cash upon completion, and a further A$2.5 million payable in cash on or before 12 months from the sale of the first concentrate from the Sorby Hills Project. The plant will be dismantled and relocated to Sorby Hills. Boab highlighted that this acquisition significantly enhances project execution and the construction timeline by de-risking equipment procurement and reducing upfront capital costs. An extensive list of new spares was also included in the transaction.
Due diligence completed by Boab, in conjunction with GR Engineering Services (GRES), confirmed that the DeGrussa Processing Plant is ideally suited for the proposed flowsheet design and production rate for Sorby Hills. Simon Noon, Boab’s Managing Director and CEO, expressed delight, stating, “We are delighted that all requirements for completion of the DeGrussa Processing Plant acquisition have now been satisfied. The DeGrussa Mine was a world-class asset, and since its cessation in 2024, Sandfire has kept the plant in excellent condition. Based on our detailed due diligence and the plant’s applicability to the Sorby Hills Project, the acquisition of the DeGrussa Processing Plant was a clear value adding opportunity.”
Boab made a Final Investment Decision at Sorby Hills in late 2025, securing approximately A$346 million in debt and equity for project development. Final regulatory approvals were received on 30 March 2026, with on-site development activities now ramping up. The company remains on track for the commencement of commercial concentrate production in the second half of 2027. The DeGrussa Processing Plant, located in the Meekatharra region, includes a primary crusher, ore storage bin, ball mill, SAG mill, flotation circuit, concentrate and tailings thickeners, all fit-for-purpose for the Sorby Hills project’s targeted 100ktpa concentrate production rate.
