PERTH (miningweekly.com) – ASX-listed junior Metalicity has inked a memorandum of understanding (MoU) with the engineering and equipment arm of zinc developer China Nonferrous Metal Industry’s Foreign Engineering and Construction Company (CNFC), to possibly partner in the Admiral Bay zinc project, in Western Australia.
The company said on Wednesday that the MoU with CNFC is the first step in a potential partnership regarding the feasibility, development, financing and construction of Admiral Bay.
“Admiral Bay is a zinc project of world-class scale with the potential to support a large, multi-decade zinc operation in the premier mining jurisdiction of Western Australia,” said Metalicity MD Matt Gauci.
“The MoU with CNFC is an important step in securing a potential partner with the engineering, construction and financing capabilities to develop Admiral Bay as has been demonstrated by this organisation on several other large zinc projects in the Middle East, Africa and Asia, and the clear intent to do so in Australia for a multibillion-dollar project.”
The terms of the MoU include assistance in the prefeasibility study for the Admiral Bay project, including a detailed review of the technical and financial parameters of the recently completed scoping study; preparing a project study report in compliance with the financing requirements of Chinese banks; securing Chinese project financing and outlining terms of product specification and offtake agreements with Chinese smelters.
Meanwhile, Metalicity is also engaged in separate discussions with other parties, including resource houses and financiers, regarding an investment in either the company or in Admiral Bay.