Black Iron (TSX:BKI) has announced that Cargill has been selected as it’s off-take partner its Shymanivske iron ore project in Ukraine and will provide a US$75M finance facility towards construction of the project.
Subject to completion of due diligence and successful conclusion of negotiations, the key terms of the proposal are:
- Off-take 100% of the phase 1 production (4Mtpa) for an initial 10 years.
- BKI will receive 100% of the 65% Fe content benchmark price and will then share with Cargill the premium above that for its own 68% Fe pellet feed concentrate.
- Drawdown of the US$75m finance facility is conditional to certain conditions related to the project being fully permitted and financed.
Black Iron and Cargill will now start work on definitive binding off-take and financing agreements which will reflect the proposal.