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Black Iron And Ukrainian Government Agree On Terms For Essential Land Transfer –
TORONTO, CANADA / ACCESSWIRE / November 14, 2019 / Black Iron Inc. (“Black Iron” or the “Company”) (TSX:BKI)(OTCPINK:BKIRF)(Frankfurt:BIN) management have achieved a MAJOR milestone in its Shymanivske project development by agreeing on terms with Ukraine’s Government to acquire a key parcel of land that is being used by Ukraine’s Ministry of Defense for location of Black Iron’s future processing plant, tailings and waste rock stockpiles.
A Memorandum of Understanding (the “MOU”) was signed today between Black Iron and Ukraine’s Ministry of Defense with support from Ukraine’s Prime Minister and Ministry of Economy offices. Pursuant to the MOU, the Ministry of Defense has agreed to transfer a 1,263 ha parcel of land adjacent to Black Iron’s Shymanivske ore body in exchange for a commitment from Black Iron to provide compensation that will largely be used to fund the construction of needed apartments for service men and women. The ultimate amount of compensation to be paid by Black Iron is currently being negotiated and will be finalized as part of entering into a binding agreement with the Ministry of Defense for the land transfer. Black Iron’s Preliminary Economic Assessment incorporates a reasonable amount of money, based on benchmarks of land value and precedent transactions, for the compensation to be paid to the Ministry of Defense within the US$436 million estimated cost to construct its first phase 4 million tonnes per annum of production.
Black Iron’s CEO Matt Simpson commented: “This is a huge win-win for Black Iron’s shareholders and Ukraine’s Government. Management of Black Iron has been working extensively to secure this essential land for project construction along with immediate access to conduct an environmental impact assessment. Once the binding agreement is in place, Ukraine’s Government will receive the funds necessary to construct much needed apartments for its servicemen and women. I would like to thank Ukraine’s new government and Canada’s Embassy to Ukraine for their quick action and support on this matter. The MOU represents a significant achievement for Black Iron and furthers Black Iron’s development, construction and production plans of the Shymanivske project.”
About Black Iron
Black Iron is an iron ore exploration and development company that holds permits for the Shymanivske project located in Kryviy Rih, Ukraine which is ranked by CRU as lowest cost undeveloped iron ore project globally. The Shymanivske project is located in very close proximity to major infrastructure including railway, power, ports and skilled labour allowing for a relatively quick and low-cost construction. It contains a NI 43-101 compliant mineral resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 32.0% total iron and 19.5% 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 “Preliminary Economic Assessment”) 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.
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