Offtake

Boab have engaged in a process to gauge interest in their 75% share of the Sorby Hills Lead-Silver Concentrate and ultimately execute binding agreements for the offtake sale of this material.

Throughout the process Boab has received a large number of Indicative Offtake Proposals from leading domestic and international offtakers, demonstrating a strong demand for Sorby Hills Lead-Silver Concentrate. The Proponents with the strongest Indicative Offtake Proposals have been shortlisted.

As Joint Venture partner, Yuguang will receive 25% of the Sorby Hills lead-silver concentrate produced in proportion with their Joint Venture interest and produce refinined lead and silver via their Chinese smelter operations. The production and consumption of lead-silver flotation concentrate is undertaken routinely around the world with a large amount produced in Australia for sale into Asia namely China, Korea and Japan. The production and sale of refined lead metal and silver metal are mature, well understood markets.

The flotation concentrate produced on site will be filtered, contained in sealed half-height containers and transported from site to the Port of Wyndham from where it is shipped in lots between 5,000wmt to 10,000wmt to lead smelters.

Fresh Ore and Oxidised Ore will be processed via separate campaigns to produce separate concentrates derived from Fresh Ore and Oxidised Ore. The alternation of ore type processing campaigns will be throughout an approximately 3 to 5 week shipment cycle and natural variations within each ore type, will result in “Mixed Shipments” (i.e. one containing concentrate produced from both Fresh Ore and Oxidised Ore). The strategy to contain lead to limit environmental exposure dictates that there will be no physical blending or homogenisation of concentrate consignments prior to shipping.