- The second and final tranche of a Black Iron private placement will contribute to gross proceeds exceeding $1.59 million; these funds are expected to be used for Shymanivske iron ore project advancement
- Black Iron needs the financial resources to secure essential land surface rights and to further discussions surrounding project construction financing
- The company also announced discussions with the Ukrainian Ministry of Defense regarding the transfer of a parcel of land to be used for the construction of its processing plant and waste rock storage facility
Toronto-based Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) recently closed the second and final tranche of an earlier announced private placement of units. The funds generated through the non-brokered private placement are earmarked for securing essential land surface rights and furthering the advancement of Shymanivske iron ore project construction and financing.
Pursuant to the closing of the second tranche, the company issued 9,043,950 units at a price of $0.06 per unit for gross proceeds of $542,637. Combined with the closing of the first tranche, the private placement is set to generate gross proceeds of $1,593,143.
The current Black Iron focus is on advancing the development of its wholly owned Shymanivske iron ore project in Krivyi Rih, Ukraine, toward construction. The mining-friendly area is surrounded by five other operating iron ore mines in very close proximity to all of the infrastructure necessary to allow for a low upfront cost phased build, including railway, power, port and skilled labor.
At the end of March 2019, Black Iron announced that Ukraine’s government had agreed to develop a plan to transfer a key parcel of land to the company. The company requires additional land suitable for the placement of its processing plant, tailings and waste rock. The transfer is expected to be completed after additional discussions focusing on a compensation package that will cover the replacement and relocation of Ministry of Defense facilities, as well as repatriation of some surrounding land.
The parcel of land is suitable from both social and environmental standpoints, Black Iron announced in a news release (http://nnw.fm/94YFw). Its close proximity to Shymanivske also makes it a cost-efficient choice that should reduce the expenses linked to hauling ore and waste.
As per the announcement, Black Iron plans to build its Shymanivske iron ore project in two phases. The company will make use of the solid fundamentals that the area has to offer, which include the excellent infrastructure, skilled local labor and close proximity to steel mills located in Turkey, Europe and the Middle East.
The Shymanivske iron ore project is expected to produce an ultra-high grade, 68 percent iron ore concentrate. The operating cost is forecast to be low, at roughly $31 per ton, with a capital intensity of less than $95 per ton of capacity.
Black Iron intends to produce high-grade pellet feed, as the concentrate available at Shymanivske is an ideal source for pellets, because it doesn’t have to be ground finer. The price of high-grade pellet feed is anticipated to grow disproportionately on the iron ore market. Since November 2018, iron ore prices have gone up nearly 40 percent and are currently at their highest levels in almost a year.
The technical and scientific contents of this article have been reviewed and approved by Matt Simpson, P.Eng., CEO of Black Iron, who is a Qualified Person as defined by NI 43-101.
For more information, visit the company’s website at www.BlackIron.com
NOTE TO INVESTORS: The latest news and updates relating to BKIRF are available in the company’s newsroom at http://nnw.fm/BKIRF
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