Metalicity has secured a joint venture agreement with China Nonferrous Metals Company (CNFC) that will help it advance the Admiral Bay zinc project in Western Australia.
Perth-based Metalicity said the memorandum of understanding (MoU) was the first step in a potential partnership regarding feasibility, development, financing and construction of the project.
Metalicity managing director Matt Gauci described Admiral Bay as a zinc project of world-class scale with the potential to support a large, multi-decade zinc operation.
“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 multi-billion project,” he said.
At the same time, Metalicity is in separate discussions with other parties, including global resources houses and financiers, regarding an investment in the company or project.
It reported that these discussions were at an advanced stage and the company would inform the market should they progress to a binding investment proposal.