TORONTO, Feb. 20, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- Black Iron Inc. (“Black Iron”) (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) is pleased to announce the signing of a non-binding Memorandum of Understanding (the “MOU”) with a subsidiary of Glencore plc (“Glencore”), pursuant to which the parties agree to engage in formal negotiations to finance the construction of the Shymanivske Iron Ore Project (the “Project”).
The MOU contemplates Glencore making an investment to help fund construction of the Project in exchange for securing the offtake of up to the full phase one planned annual production of four million tonnes with the terms and amount still to be negotiated. Additionally, the MOU outlines cooperation between Black Iron and Glencore to leverage their relationships to source the balance of funds required to construct the Project.
The MOU also allows for allocation of offtake to other equity investors subject to the investment terms offered being equal or superior to those proposed by Glencore. Black Iron is currently in discussion with other companies that have expressed strong interest in securing supply of the ultra high-grade iron ore concentrate expected to be produced from the Project in exchange for providing construction financing.
Matt Simpson, Black Iron’s CEO, commented: “I am excited to welcome Glencore as an offtake investor for construction of the Shymanivske Project as well as their agreement to work with us to help secure additional financing. Glencore’s involvement significantly strengthens our capability and draws on their extensive international network, experience and market knowledge.”
Securing the complete finance package in addition to the required surface rights are the two main areas of focus for Black Iron management. As previously indicated, debt finance discussions are ongoing with international finance institutions and European based banks who really like the projected robust economics of the Project due to its low operating cost and construction capital intensity.
The Project is located in Kryvyi Rih, Ukraine, a highly developed iron ore mining region with well-established infrastructure located well away from the conflict zones. The Project’s proximity and access to major infrastructure including paved roads, railway, powerlines and port as well as highly skilled low-cost labour force allow for a phased development approach at significantly reduced initial capital requirements and operating costs.
Black Iron plans to produce a 68% iron content pellet feed concentrate with very low levels of trace elements that can be used to produce high-quality iron ore blast furnace pellets or premium direct reduction grade pellets. It can also be used as a sweetener in the feed for sinter production which is then processed to iron in blast furnaces.
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske project located in Kryvyi Rih, Ukraine. The Shymanivske project contains a NI 43-101 compliant resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 31.6% total iron and 18.8% magnetic iron, and Indicated mineral resources of 290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the Shymanivske project contains 188 Mt of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron. Full mineral resource details can be found in the NI 43-101 compliant technical report entitled “Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit” effective November 21, 2017 under the Company's profile on SEDAR at www.sedar.com. The Shymanivske project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. Please visit the Company's website at www.blackiron.com for more information.
The technical and scientific contents of this press release have been prepared under the supervision of and 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.
The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
For more information, please contact:
Black Iron Inc.,
Chief Executive Officer
Tel: +1 (416) 309-2138
This press release contains forward-looking information. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed in the section entitled ‘‘Risk Factors’’ in the Company’s annual information form for the year ended December 31, 2017 or as may be identified in the Company’s public disclosure from time to time, as filed under the Company’s profile on SEDAR at www.sedar.com. Forward-looking information may include, but is not limited to, statements with respect to the Project, the MOU and the transactions contemplated therein, the relationship between Glencore and the Company, the mineralization of the Project, the results of the PEA, the realization of the PEA, and future plans for the Company’s development. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.