Hey! I tried to drag in a .mtl file for the model but it showed I can only import png images. Is there a way to convert .mtl to png?
I'm going out on a limb here and say you need to do it with one material and one UV set, it's not ready now so you need to stay within those line!
.mtl is a shader and Buildbox 3 has it's own shaders which are not compatible. PNGs are used for textures, which is just a map for colors. You can't convert a shader to a texture. Shaders are made up of textures and lighting data. Textures are a component of shaders. What you need to do is save your color map as a PNG. Use the OBJ for model data only.