Notice to Warrantholders of Acceleration of Expiry Date and Corporate Update
NOTICE TO WARRANTHOLDERS OF ACCELERATION OF EXPIRY DATE AND
CORPORATE UPDATE
For Immediate Release
TORONTO, CANADA, July 30, 2020 – Black Iron Inc. (“Black Iron” or the “Company”) (TSX: BKI)
announces that it has elected to accelerate the expiry date of the common share purchase
warrants dated March 29, 2019 and April 5, 2019 (collectively, the “Warrants”).
The Warrants were issued in connection with a private placement of units, with each share
purchase warrant being exercisable into one additional common share of the Company at a price
of $0.09 per share until March 29, 2022 and April 5, 2022, as applicable.
The Warrants are subject to the right of the Company to accelerate the expiry date of the Warrants
if the Company's common shares close at or above $0.15 per share for more than 10 consecutive
trading days on the Toronto Stock Exchange (the “Acceleration Event”). The Company is entitled
to accelerate the expiry of the Warrants to that date that is 30 business days from the date of
issuance of a news release announcing the exercise of the acceleration right.
This press release constitutes notice to the holders of Warrants that the Acceleration Event has
occurred and the Company has elected to accelerate the expiry date of the Warrants in
accordance with the terms of the certificates representing the Warrants to the date that is thirty
(30) days after the date hereof, bein g August 31, 2020. This notice only affects the Warrants
dated March 29, 2019 and April 5, 2019 and not any other warrants the Company has issued.
In order to exercise your Warrants, you are required to complete and submit the Notice of Exercise
attached to your respective Warrant certificate on or before 5:00 pm on August 31, 2020. For
detailed exercise requirements, please refer to your Warrant Certificate.
Corporate Update
Black Iron ’s management have recently initiated discussions with institutional investors on a
royalty that could contribute materially to the funding required for project construction and are
receiving strong interest. Negotiation of a Heads of Agreement on the comme rcial terms to be
included in a binding contract for a high potential ~US$60 million investment in exchange for being
awarded the construction contract for the Shymanivske project have concluded positively with
one company and are well advanced with a seco nd. Further details on this will be disclosed in
due course noting that a binding contract would only be entered into with only one of these two
companies, should the parties reach an agreement, who will then lead the future planned
construction of the project.
Black Iron’s management congratulates Ukraine's government and the Organisation for Economic
Co-operation and Development (OECD) in reaching a ceasefire agreement between government
forces and pro -Russian separatists in Eastern Ukraine that came i nto effect this past Monday,
July 23. This is positive for Black Iron shareholders as it further broadens the base of investors
who will be interested to invest in project construction and in the market. Although management
of Black Iron felt the political risk to the Company due to the conflict between Russia and Ukraine
was very low as the front line hadn’t moved in over 6 years, this ceasefire agreement should help
alleviate any concern investors may have had.
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%
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 Warrants, the exercising of Warrants, the Company’s
ability to obtain adequate financing, the Company’s ability to develop the Shymanivske project, the
ceasefire 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", "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 b y 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, reade rs 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.