Metalicity Ltd. (ASX:MCT) announced that China Non-Ferrous Metals (NFC) has formally notified the company of the successful completion of a detailed review of the technical and financial parameters of the Admiral Bay zinc project.
Highlights are as follows:
- China Non-Ferrous Metals (NFC) have formally notified Metalicity of the successful completion of a detailed Review (Review) of the technical and financial parameters of the Admiral Bay Zinc Project (Admiral Bay) Pre-Feasibility Study (PFS) Stage 1 report supporting the Memorandum of Understanding (MOU) signed on 8/2/17.
- The Review is a key term of the MOU between Metalicity and CNFC Equipment Co.,LTD (CNFC), a holding subsidiary of China NFC, regarding the feasibility, development and financing of Admiral Bay.
- China NFC will now complete a Project Study Report (Project Study) incorporating Engineering Procurement Construction (EPC) costings as part of the Admiral Bay PFS which are anticipated to reduce the capital and operating costs, reduce long lead item times, accelerate development timelines and overall economics.
- The Project Study is a key working document required to comply with financing requirements of Chinese Banks for debt, equity and other financing mechanisms, and an important step in accelerating a binding agreement with China NFC for the feasibility, development and financing of Admiral Bay
- The China NFC Project Study compliments the recently completed metallurgical test work program supporting the MOU signed with China Minmetals, towards a binding feasibility, development, financing and offtake agreement with both organisations being China’s leading zinc industry participants.
Matt Gauci, managing director, commented:
The positive review supporting the MOU with China NFC and combined with successful metallurgical testwork supporting the MOU with China Minmetals established a very strong framework for the feasibility, development, financing and offtake agreement with China’s largest and most credible engineering, resources, mining and metals groups in the zinc sector.