Ironbark Zinc signs key agreement with Chinese construction group, NFC for Citronen Project

Ironbark Zinc (ASX: IBG) is moving ever closer to development of the wholly owned Citronen Base Metal Project with today's agreement with NFC (China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd) and Allmine Group (ASX: AZG).

Which is deftly timed as Ironbark is currently finalising a Feasibility Study on the Citronen project.
The agreement will seek to define a framework for; NFC to engineer, design, procure, supply, construct, test and commission the project on a full turnkey basis; and also to facilitate funding of the project development costs from major banks in China.

It will also look at an offtake agreement with NFC for the concentrate products of the project.
NFC has a market capitalisation of $3.4 billion and listed on the Shenzen Stock Exchange.

Jonathan Downes, managing director of Ironbark, along with chairman Peter Bennetto - signed the agreement with senior representatives of the NFC in Beijing.

Bennetto commented, “Ironbark is delighted to enter into a mutually rewarding relationship with NFC for the development of the Citronen base metal project.

"NFC’s credentials are beyond reproach in the engineering, construction and delivery of major international projects."

Qin Junman, Vice-president of the NFC added, “NFC is looking forward to fostering a close and productive relationship based on cooperation with Ironbark as we jointly work on the development of a major new zinc and lead mining operation.

"We are pleased to have signed the MOU and believe that a close relationship will result in an exciting outcome.”

Under the signed agreement the company will work with NFC and Arccon (the subsidiary of Allmine Group) to establish the development program and associated costs for the delivery of the project.

Citronen is being evaluated to mine at a rate of 3 million tonnes per annum and produce zinc and lead concentrates for delivery around the world.

The project currently hosts in excess of 11 billion pounds of zinc and lead, with the full JORC Resource 59.9 million tonnes at 5.9% zinc plus lead.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19164/ironbark-zinc-signs-key-agreement-with-chinese-construction-group-nfc-for-citronen-project-19164.html