- The offering’s maximum proceeds are expected to reach $1.5 million
- The funds will be utilized to further construction at Shymanivske iron ore project, which is anticipated to begin just after year end
- Black Iron is currently working to secure surface rights and reports solid progress
Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN), a Canadian iron ore exploration and development company, recently announced plans to complete a non-brokered private placement financing of up to 25 million units of the company at a price of $0.06 per unit. The proceeds from the offering will be used to advance the Black Iron Shymanivske project, according to a company press release (http://nnw.fm/mVj7I).
The offering’s maximum proceeds are expected to reach $1.5 million. Each unit is to consist of one Black Iron common share and one-half of one common share purchase warrant.
The closing of the offering is subject to the receipt of the needed regulatory approval, including approval from the Toronto Stock Exchange. As noted in a news release issued on March 29, the company has already closed the first of two planned tranches of this private placement.
Funding is required to secure essential land surface rights, to further discussions on construction financing and for general purposes at the Shymanivske iron ore project, Black Iron said.
The Shymanivske project is 100 percent owned by Black Iron. Located in the historically-rich Kryvyi Rih region of Ukraine, it contains an NI 43-101-compliant resource that’s estimated to include 646 Mt of measured and indicated mineral resources, consisting of 355 Mt measured mineral resources grading 31.6 percent total iron and 18.8 percent magnetic iron, as well as indicated mineral resources of 290 Mt grading 31.1 percent total iron and 17.9 percent magnetic iron, using a cut-off grade of 10 percent magnetic iron.
In addition, the project also contains 188 Mt of inferred mineral resources grading 30.1 percent total iron and 18.4 percent magnetic iron.
Black Iron is optimistic that it can initiate construction at the project by the end of 2019. According to Black Iron CEO Matt Simpson, discussions to secure the surface rights are progressing well.
Upon its launch, Shymanivske is expected to produce ultra-high-grade 68 percent iron ore concentrate at a very low cost. The use of such ultra-high-grade iron ore in the production of steel generates an array of benefits, such as increased blast furnace productivity and reduced greenhouse emissions.
Because of this fact, as well as the climbing price of iron, Black Iron anticipates a strong economic return from the Shymanivske project. This return further reinforces the unique investment opportunity that the project offers due to the fact that it’s located in a region with well-established infrastructure. Most of the iron ore developments across the world necessitate the construction of high-cost rail, power lines and even ports.
In May 2018, Black Iron announced that analysis firm CRU ranked Shymanivske at the lowest position of the business cost curve and at the second-lowest position based on capital intensity among undeveloped pellet feed iron ore projects globally.
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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