Black Iron Provides Project Update And Announces AGM Results
Black Iron Provides Project Update And Announces AGM Results
For Immediate Release
TORONTO, CANADA, June 27, 2019 – Black Iron Inc. (“Black Ir on” or the “Company”) (TSX:
BKI) reports, r ecently elected Ukraine President Zelensky along with several Ministers from
Ukraine’s Government will be in Toronto next week and Black Iron ’s CEO Matt Simpson is
participating in several meetings including a panel at the Ukraine House event on July 3 rd being
moderated by the Chairman of UkraineInvest.
Good progress is being made to secure essential land for Black Iron’s Shymanivske project
construction with an agreement recently being reached with Ukraine’s Ministry of Defence on the
co-ordinates for a parcel of land they are willing to turn over to Black Iron subject to preconditions
currently being negotiated.
The sale price of ir on ore is up 45% year to date with 62% iron content product currently selling
for ~US$117 per tonne and 65% iron content product for ~US$128 per tonne. T his is helping
attract potential investors to finance construction of Black Iron’s Shymanivske project. The
premium 68% iron content product that Black Iron aims to produce is expected to sell for a much
higher price than the benchmarks while being produced at an estimated cost of US$31 per tonne.
The project’s expected financial returns using today’s iron ore sale prices are off the top of the
chart included in the most recent preliminary economic assessment as shown below. Technical
details about the project can be found in the NI 43 -101 compliant technical report entitled
“Preliminary Economic Assessme nt of the Re -scoped Shymanivske Iron Ore Deposit” effective
November 21, 2017 under the Company’s profile on SEDAR at www.sedar.com.
Expressions of interest were recently received from two multi-billion dollar Asian engineering,
procurement and construction companies to make an equity investment of 10% of the total project
construction cost (i.e. ~US$45 million investment) in exchange for being awarded the construction
contract. The proposal is for the equity to be invested over the period of constructing Black Iron’s
Shymanivske project and hence is likely to be made at a much higher share price.
Black Iron’s financial advisor has completed their financial modeling work and started reaching
out to pure financial inv estors and royalty/stream providers to solicit interest in funding project
construction. The financial model reinforces very high returns on investment under various iron
ore prices and financing structures along with a massive gap in the Company’s current share
price relative to its future potential.
AGM Results
In accordance with the policies of the Toronto Stock Exchange, that the nominees listed in the
management information circular dated May 29, 2019 were elected as directors of the Company
at the Annual Meeting of shareholders of the Company (the “Meeting”) held on June 27, 2019.
Detailed results of the vote for the election of directors are as follows:
Votes For % Votes For Votes
Withheld
% Votes
Withheld
John Detmold 39,254,161 99.928% 92,737 0.236%
Bruce Humphrey 39,254,161 99.928% 92,737 0.236%
Pierre Pettigrew 39,191,061 99.604% 155,837 0.396
David Porter 39,254,161 99.928% 92,737 0.236%
Matthew Simpson 39,684,953 99.924% 30,000 0.076%
Shareholders at the Meeting also approved the appointment of the Company's auditors . A total
of 39,719,953 common shares were voted in connection at the Meeting, representing
approximately 21% of the issued and outstanding common shares of the Company.
About Black Iron
Black Iron is an iron ore expl oration 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%
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 that time. Forward -looking information may include,
but is not limited to, statements with respect to the election of directors , the Company’s ability to develop
the Shymanivske project, the Company’s ability to raise adequate capital, the Company’s ability to secure
the requisite 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 no t 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 in tended. 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 lookin g 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.