A Chinese government-backed construction company and Allmine Group subsidiary Arccon have signed a non-binding agreement with Perth-based Iron Bark Zinc to facilitate the development of the Citronen base metals project in northern Greenland.
The memorandum of understanding will establish a framework to negotiate formal agreements for China Nonferrous Metal Industry’s Foreign Engineering and Construction Company and Arccon to engineer, supply, design and commission the project on a turnkey basis.
The agreement will also pave the way for the China Nonferrous to facilitate funding from major banks in china and to enter into off-take agreements for the concentrate products from the project.
Ironbark is currently finalising a feasibility study for the Citronen project, one of the world’s largest undeveloped zinc deposits, with a predicted production capacity of around 3 million tonnes per annum.
Ironbark’s stock was up 8 per cent at 1:23PM (WST), to trade at 27 cents.
