Black Iron and Ukrainian Government Agree ON Terms FOR Essential Land Transfer
BLACK IRON AND UKRAINIAN GOVERNMENT AGREE ON TERMS FOR ESSENTIAL
LAND TRANSFER
For Immediate Release
TORONTO, CANADA, November 14, 2019 – Black Iron Inc. (“Black Ir on” or the “Company”)
(TSX: BKI; OTC: 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 M OU, 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 Iro n 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 Co mpany’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 sci entific 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.
For more information, please contact:
Matt Simpson
Chief Executive Officer
Black Iron Inc.
Tel: +1 (416) 309-2138
Forward-Looking Information
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. Forward -looking information may include,
but is not limited to, statements with respect to the Company’s ability to develop the Shymanivske project,
the mineralization of the Shymanivske project, the expected support from the Ukrainian government, the
ability to develop the Shymanivske project, the Company’s ability to raise adequate capital, the Company’s
ability to secure the req uisite land rights and the Company’s future plans . 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 annua l 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 p lace undue reliance on forward
looking information. The Company does not undertake to update any forward -looking information, except
in accordance with applicable securities laws. The Company notes that mineral resources that are not
mineral reserves do not have demonstrated economic viability.