Black Iron Comments ON Recent Share Price and Provides Contruction Financing and Land Progress Update
BLACK IRON COMMENTS ON RECENT SHARE PRICE AND PROVIDES
CONTRUCTION FINANCING AND LAND PROGRESS UPDATE
For Immediate Release
TORONTO, CANADA, August 12, 2019 – Black Iron Inc. (“Black Iron” or the “Company”) (TSX: BKI; OTC:
BKIRF; FRANKFURT: BIN) continues to advance the Shymanivske Iron Ore Project (“Shymanivske” or the
“Project”) towards construction with management efforts focused on securing funding for con struction and
land usage rights. The recent drop in share price is potentially attributed to a combination of shares from
the April 2019 private placement (the “Private Placement”) becoming free trading and a decline in the global
price of iron ore (important to note that the price is still up over 30% since the start of this year ). Although
Black Iron’s share price has increased since the Private Placement , the Company’s current market
capitalization is a fraction of its future potential as shown in the chart below copied from the Company’s
Preliminary Economic Assessment.
Today’s benchmark iron ore price of ~$94 per tonne for product containing 62% iron (Black Iron plans to
produce a premium priced 68% iron content product) is just off the top of the chart above which is used to
show Black Iron’s exceptional projected financial returns across a range of iron ore prices. It is rare to find
a project that provides such high financial returns at any realistic product sale price . Black Iron has such
expected strong financial returns because of the relatively low cost of highly skilled labour in Ukraine and
low cost of electricity coupled with very close distance to railway, powerlines and ports resulting in a lower
up-front time and cost to construct.
CONSTRUCTION FUNDING ADVANCING
In September 2019, Black Iron management will be hosting a multibillion-dollar Asian construction company
at site that have expressed an interest to invest approximately US$50 million in equity in exchange for being
awarded the construction contract. This group has already completed a detailed review of the Shymanivske
project resulting in a non -binding expression of interest including US$50 million funding offer being
submitted.
Black Iron’s financial advisor has reached ou t to several European export credit agencies and banks
requesting expressions of interest to provide debt financing for construction and several of these groups
have stated they will be making a submission at August month end.
Glencore’s iron ore team have reached out to several potential companies that may be interested to invest
alongside them in the construction of Black Iron’s project and made themselves available for due diligence
calls with other potential investors.
LAND ACQUISITION ADVANCING
Since returning to Ukraine from his trip to Canada, Ukraine President Zelensky has taken some concrete
steps in support of Black Iron’s land acquisition. Specifically, the President’s office requested that the
Ministry of Defence, which currently uses the land Black Iron requires, and the Ministry of Economy, develop
a land transfer plan jointly with Black Iron management. Additionally, the President’s office requested the
City of Kryviy Rih, where the project is located, to meet with Black Iron management to discuss how they
can be supportive in the project’s development.
Parliamentary election s in Ukraine occurred on July 21, 2019 and President Zelensky’s Servant of the
People Party won a majority government. This is very positive as it provides President Zelensky with the
support needed to make legislation changes that are favourable to attract and protect foreign investors.
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske
project located in Kryviy Rih, Ukraine. The Shymanivske project 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% magneti c 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” or “PEA”) under the
Company’s profile on SEDAR at www.sedar.com. The Shymanivske pr oject 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.
Cautionary Statement
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 as mineral reserves. There is no certainty that the PEA will be realized.
For more information, please contact:
Matt Simpson
Chief Executive Officer
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 th at time, including those factors discussed in the
section entitled ‘‘Risk Factors’’ in the Company’s annual information form for the year ended December 31,
2018 or as may be identified in the Company’s public disclosure from time to time, as filed under the
Company’s profile on SEDAR at www.sedar.com. Forward -looking information may include, but is not
limited to, statements with respect to the Project, the mineralization of the Project, the results of the PEA,
the realization of the PEA, the expectations of future cash flows, the expected economics forecast, the geo-
political climate in Ukraine, the impact of changes to the Company’s management team, the Company’s
ability to raise the requisite financing, the Company’s ability to obtain the requisite land rights for the Project
and other requisite permits or approvals, and future plans for the Company’s development. 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; o ther risks of the mining industry and the risks described in the annual 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 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.