Black Iron Offtake and Royalty Progress Update
BLACK IRON OFFTAKE AND ROYALTY PROGRESS UPDATE
For Immediate Release
TORONTO, CANADA, September 30, 2020 – Black Iron Inc. (“Black Ir on” or the “Company”)
(TSX: BKI) has set October 9, 2020 as the submission date for expressions of interest to be
received from steel mills and global trader s to secure the right s to purchase its initial entire
expected annual production of 4 million tonnes of pellet feed, in exchange for making a substantial
investment towards construction of the Shymanivske iron ore project (the “Project”). There are
several multi -billion market capitalization companies participating in this competitive process
given their interest in Black Iron’s very low expected operating and construction costs to produce
an ultra premium 68% iron content product in close proximity to several steel mills.
Upon review of the expressions received, a subset of the steel mills and global traders who submit
the most compelling investment and offtake proposals will be invited to participate in a second
round of due diligence . The selected steel mills and global traders will then be provided more
detailed technical and legal information, as well as be invited to conduct site tours, either in person
or virtually depending on travel preferences and constraints. Upon completion of the second
round, targeted for mid Q1 2021, binding submissions to invest and secure offtake rights will be
sought.
Black Iron’s management are also well advanced in the negotiation of terms for a potential royalty
investment valued at multiple times the Company’s current market capitalization. The main benefit
of including a royalty investment as part of the capital structure is it is less dilutive for existing
shareholders given the investment amount relative to today’s market capitalization. Should this
royalty investment be secured on attractive terms , it has the potential to displace the offtake
investment as the main source of equity required for Project construction. For clarity, Company
management will still seek to secure an offtake investment to round out the equity required for
Project construction and product purchase agreements often required by debt investors . It is
possible, this royalty could be finalized prior to the end of this year.
Finally, Black Iron management are also very close to finalizing a Heads of Agreement with a
second construction company that will include an investment package valued at ~US$60 million.
Black Iron expects to conclude a binding construction / investment agreement after the offtake
investment has been secured.
Further updates on the results of th ese processes will be announced as continued progress is
made.
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 mine ral
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 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.
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 th at time. Forward -looking information may include,
but is not limited to, statements with respect to the financial viability of the Project, the Company’s ability to
obtain adequate financing, the Company’s ability to develop the Shymanivske project, the c easefire of
conflict in Ukraine 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", "estim ates", "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 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. The Company notes that mineral resources that are not mineral reserves do not
have demonstrated economic viability.