ZincOx Resources and Korea Zinc Co in Vietnam recycling plant JV

ZincOx Resources and Korea Zinc Company Ltd (KZC) have entered a Memorandum of Understanding (MoU) for the joint design and development of a recycling plant in Vietnam.

The MoU foresees KZC funding 100% of a Definitive Development Study (DDS) in sufficient detail to enable the raising of project finance for the construction of the project.

The DDS was expected to cost about $2.5m, ZincOx said.

KZC would own 51% of a special purpose company, which would be set up to develop the recycling plant, with the remaining 49% held by ZincOx.

In the event that the DDS costs more than $3m, the interest of ZincOx in the JV should be diluted proportionately accordingly to the additional funds that KZC has contributed, however ZincOx will be able to buy back its interest to 49% on the same terms in the following six months.

The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by ZincOx in Korea, and where KZC are the Company's partners.

The Korean Recycling Plant is one of the world's largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel scrap and has a design capacity of 200,000 tonnes a year.

The recycling plant is planned to treat 100,000 tpa of EAFD and in addition to upgrade both the iron and zinc intermediate products of the RHF to final products.

At about 11:40 GMT, shares in ZincOx were at 0.45p.