Black Iron Submits Ukraine Government Investment Support Agreement
BLACK IRON SUBMITS UKRAINE GOVERNMENT INVESTMENT SUPPORT AGREEMENT
For Immediate Release
TORONTO, CANADA, July 17, 2023 – Black Iron Inc. (“ Black Iron” or the “ Company”) (TSX:
BKI) is pleased to report the submission of a proposed legally binding special investment support
agreement (the “Investment Agreement”) to Ukraine’s Ministry of Economy for consultation. The
Investment Agreement includes transfer of lands required for location of the Shymanivske Iron
Ore Project’s (the “ Project”) processing plant, tailings and waste stockpiles, upon the end of
martial law (the “Land Transfer”).
The Investment Agreement is a relatively new Ukraine government initiative be ing led by the
Ministry of Economy with the backing of the entire Cabinet of Ministers. There are many benefits
for Black Iron to put an Investment Agreement in place , including most importantly having key
Ministries in Ukraine’s government approve th is Investment Agreement to support the Land
Transfer, rezoning, lease, and general implementation of the Project. The Investment Agreement
also provide s for meaningful exemptions from import duties on mine and processing plant
equipment purchased. Having an Investment Agreement is also a prerequisite for the Company
to apply for political risk insurance from the World Bank’s Multilateral Investment Guarantee
Agency (“MIGA”), which may be a condition required by banks and larger investors for future
Project construction financing.
Submission of Black Iron’s proposed Investment Agreement was a major undertaking that
involved creation of a multi -hundred-page Ukraine feasibility study focused on the social and
economic impacts of the Project , discussions with Ukraine’s government to ensure Black Iron is
a qualified applicant and obtaining updated letters of interest from investors proposing to fund
future Project construction.
It is unclear as to how long Ukraine’s Ministry of Economy will take to complete its review of Black
Iron’s Investment Agreement submission, given this will be one of the first applications.
Subsequent to the Ministry of Economy’s review and support, the Investment Agreement will then
be provided to Ukraine’s Cabinet of Ministers for approval and execution.
As of writing, Black Iron’s Ukraine based team located in the city of Kryvyi Rih are all safe and in
good health. Kryvyi Rih is located in the center of Ukraine, on the western side of the Dnipro
River, and is where most of Ukraine’s iron ore mines are located and continue to largely operate.
Fortunately, there has not been any active fighting on the ground in this city, although there have
been instances of missile attacks. Citizens have good access to groceries, gasoline, and banks
in the city are functioning normally.
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned
Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine. Full mineral resource details and
projected project economics can be found in the NI 43 -101 technical report entitled “(Amended)
Preliminary Economic Assessment of the Re -scoped Shymanivske Iron Ore Deposit” published
in March 2020 with an effective date of November 21, 2017 under the Company’s profile on
SEDAR at www.sedar.com. The Project is surrounded by five other operating mines, including
Metinvest’s YuGOK and ArcelorMittal's iron ore complex. 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.
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 terms of Investment Agreement, the review, approval
and execution of the Investment Agreement, the financing of the Project, ability of the Company to obtain
political risk insurance for the Project, discussions with the Ukraine government 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 war in Ukraine; 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 are not mineral reserves and do not have demonstrated economic
viability.