TORONTO, CANADA, May 9, 2019 – Black Iron Inc. (“Black Iron” ) (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) has renewed its Letter of Intent (“LOI”) with Ukraine’s National Railway to provide up to 10 Mtpa of capacity to move product from the railway line located within two kilometers of Black Iron’s Shymanivske Project (“the Project”) to Port Yuzhny, a deep water port in the Black Sea.
As Black Iron moves closer to commencing construction of the Project, it is renewing LOIs for all vital infrastructure including rail, power and port capacity. Unlike many other start-up iron ore mines, the Project has ready accessibility to all essential infrastructure needed for its operation.
Matt Simpson, Black Iron’s CEO, commented, “Renewing the LOI with Ukraine’s National Railway is an important step in providing assurance to current and future investors in our Project. We are very fortunate to be able to access such high-quality infrastructure which is right on the doorstep of our Project. We appreciate the close cooperation we have received from all levels of government in Ukraine and from the National Railway.”
As previously announced by the Company, debt and equity finance discussions are ongoing with international finance institutions, resource companies and European based banks. Formalisation of a debt and/or equity funding package would be a significant step towards the commencement of construction of the Project.
The Project is located in Kryvyi Rih, Ukraine, a highly developed iron ore mining region with well-established infrastructure. 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. Please see the Company’s PEA (as defined below) for more information.
The expected product from the Project is a high-grade (68% Fe) iron ore concentrate and can be used to produce high-quality iron ore blast furnace and direct reduction grade pellets. It can also be used as a 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 (the “PEA”) 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, 2018 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 mineralization of the Project, the results of the PEA, the realization of the PEA, the Company’s ability to execute LOIs for vital infrastructure, the Company’s ability to raise the requisite financing, the expectations of future cash flows, the expected economics forecast, the geo-political climate in Ukraine, the Company’s ability to obtain the requisite land rights for the Project and other requisite permits or approvals, 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.