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:

  1. Off-take 100% of the phase 1 production (4Mtpa) for an initial 10 years.
  2. 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.
  3. 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.

Report Information

Author Fox-Davies Capital
Date May 11, 2021
Ticker TSX-V: BKI

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