The MoU is being pitched as “the first step in a potential partnership regarding the feasibility, development, financing and construction of Admiral Bay through to production”.

NFC is said to have a strong track record of supporting the development of large, long life zinc projects, including the Citronen project in Greenland owned by Ironbark that’s at the financing stage, and the feasibility-advanced Tala Hamza project in Algeria held 65% by Terramin.

Still, given the very patchy history of MoUs involving Chinese companies, the ASX junior was also keen to stress it’s in “alternate partnering discussions with global resources houses and financiers”.

Metalicity is working on the design of a drill program that’ll target a high grade zone at the large, deep Admiral Bay deposit in Western Australia’s north.

Metalicity started 2017 with $A3.14 million cash.

Shares in the company were up 4.5% to 7c in early trade, capitalising Metalicity at $33 million.

The stock has spent much of the past year trading at 5-6c, with a spike to 10c last June around the time it said it had extended the strike length of Admiral Bay to 130km and signed a lithium MOU with a Chinese firm – the latter which was associated with a $3 million investment in Metalicity!