PERTH (miningweekly.com) – ASX-listed Metalicity has inked a memorandum of understanding (MoU) with China’s Minmetals Nonferrous Metals Company (CMN) for zinc and lead production from the Admiral Bay project, in Western Australia.
The MoU considered the supply of an initial 10% of future offtake from the 174 000 t/y of zinc and 115 000 t/y of lead expected from the Admiral Bay project, in exchange for metallurgical and beneficiation testwork that would establish a pathway to invest in either Metalicity or the project, at a company or project level.
CMN was expected to undertake metallurgical and beneficiation testwork on some 50 kg of existing core currently held by Metalicity, and will prepare a report as part of the current prefeasibility work on a direct shipping ore and concentrate model being considered for Admiral Bay, as well as for future financing and offtake negotiations.
“Admiral Bay continues to attract some of the world’s major zinc industry participants. Metalicity is very pleased to have entered into this MoU with China’s leading zinc smelting companies and one of the largest metals and minerals companies in the world, which we view as a strong endorsement of the potential for Admiral Bay,” said MD Matt Gauci.
He added that in conjunction with the company’s other MoU with CMN for the development and construction of Admiral Bay, the company was well positioned to progress long-term financing solutions for the project in partnership with some of the world’s largest and experienced zinc industry participants.