(Alliance News) - Zanaga Iron Ore Co Ltd on Thursday said it signed an accord with China Machinery Engineering Corp over hydroelectric power solutions for the Zanaga iron ore project.
Shares in Zanaga were up 28% to 11.20 pence each in London on Thursday morning.
The iron explorer focused on the Republic of Congo said the memorandum of understanding was agreed following CMEC's preliminary inspections and engineering of potential hydroelectric sites near the Zanaga project.
Zanaga said the accord was agreed with the following objectives: advance engineering and related studies for the identified hydroelectric sites near the Zanaga project; and draft arrangements for the funding of development and operation of the identified hydroelectric projects, between the Republic of Congo government and third parties.
Zanaga also updated on its feasibility study with an unnamed Chinese engineering, procurement & construction partner.
The initial review and re-costing phase of the 2014 feasibility study has been completed, indicating potential cost reductions from the 2014 study.
Zanaga said the market enquiry and financial modelling phase 2 is underway and will now be extended into the first quarter of 2024 given the "comprehensive nature of the update".
"ZIOC's feasibility study update process is progressing well and has identified a number of potential value engineering opportunities," said Chair Clifford Elphick.
By Greg Rosenvinge, Alliance News senior reporter
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Zanaga Iron (ZIOC)