Black Iron Announces Closing of $11.5 Million Offering
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN
THE UNITED STATES
BLACK IRON ANNOUNCES CLOSING OF $11.5 MILLION OFFERING
For Immediate Release
TORONTO, CANADA, July 21, 2021 – Black Iron Inc. (“Black Iron” or the “Company”)
(TSX: BKI; OTC: BKIRF; FRANKFURT: BIN) is pleased to announce that it has closed
its previously announced short form prospectus offering, including the full exercise of the
over-allotment option, raising g ross proceeds of $11.5 million for the Compan y through
the issuance of 28,750,000 common shares of the Company (collectively, the “Shares”)
at a price of $0.40 per Share (the “Offering”). The Offering is subject to final approval by
the Toronto Stock Exchange (the "TSX").
Canaccord Genuity Corp . acted as agent and sole bookrunner in connection with the
Offering
The Company intends to use the net proceeds of the Offering for (a) the completion of an
updated Feasibility Study for the Company’s Shymanivske Iron Ore Project , (b) the
completion of the Ukra inian TEO; (c) the completion of an Environmental and Social
Impact Assessment, ( d) commencement of the relocation and construction of a new
Ukrainian military firing range and ammunition depot to secure acc ess to land required
for the Company’s Shymanivske Iron Ore Project , and ( e) working capital and general
corporate purposes, all as described in more detail in the short form prospectus (the
“Prospectus”) of the Company dated July 16, 2021 and available on SEDAR at
www.sedar.com.
Matt Simpson, Chief Executive Officer of the Company, said, “It is great to see such strong
level of interest from institutional investors in the Offering and the Shymanivske Iron Ore
Project as we continue to move the project forward towards construction.”
This news release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not been and will not be
registered under the U.S. Securities Act or any applicable state securities laws, and may
not be offered or sold to, or for the account or benefit of, persons in the United States or
to U.S. persons unless registered under the U.S. Securities A ct and applicable state
securities laws or an exemption from such registration is available. “United States” and
“U.S. persons” shall have the meanings assigned to them in Regulation S under the U.S.
Securities Act.
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100%
owned Shymanivske project located in Kryviy Rih, Ukraine. Full mineral resource details
can be found in the NI 43-101 technical report entitled “Preliminary Economic Assessment
of the Re -scoped Sh ymanivske Iron Ore Deposit” published in March 2020 with an
effective date of 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 Metinvest and ArcelorMittal's iron ore complexes. 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 a s mineral reserves. There is no certainty that the PEA will be
realized. Please visit the Company's website at www.blackiron.com for more information.
For more information, please contact:
Matt Simpson
Chief Executive Officer
Black Iron Inc.
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 intended use of proceeds of the Offering , the Company’s abil ity to
obtain final approval from the TSX 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: the Company using any proceeds from the Offering in a
manner other than as set out herein, the Company not being able to obtain final approval
from the TSX with respect to the Offeri ng, 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 and the Prosp ectus. 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. The Company
notes that mineral resources are not mineral reserves and do not have dem onstrated
economic viability.