Business
Black Iron Closes Private Placement, Announces Lind Option Exercise and Project Update
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRI...
About this update from Black Iron Inc.
[{"type":"text","content":"Black Iron Closes Private Placement, Announces Lind Option Exercise and Project UpdateTHIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION TO THE UNITED STATESTORONTO, ON / ACCESSWIRE / May 8, 2020 / Black Iron Inc. (\"Black Iron\" or the \"Company\") (TSX:BKI)(OTC PINK:BKIRF)(FRANKFURT:BIN), announces that it has closed its previously announced non-brokered private placement of units of the Company (the \"Offering\"). Pursuant to the Offering, the Company issued a total of 36,534,420 units (the \"Units\") at a price of $0.05 per Unit for gross proceeds of $1,826,721.Interest to participate in the Offering was extremely strong and Black Iron management asks that investors who were unable to receive an allocation of the Offering, or their target allocation, purchase Black Iron shares in the market. The cornerstone investor in this Offering is United Kingdom-based RAB Capital who acquired a ~10% ownership position and is now a reporting insider of the Company. RAB Capital has a history of successful investing in development mining projects and intends to be a long-term supportive shareholder of Black Iron.Philip Richards, Founder and Honorary President of RAB Capital, stated: \"Black Iron offers a unique investment opportunity in a world-class iron ore development. We believe its low impurity and high-grade magnetite will be in strong demand from many global smelters. Experienced management and good local infrastructure should make the build process a successful near-term reality.\"Certain insiders of the Company have subscribed for Units pursuant to the Offering (the \"Insider Participation\"). The Insider Participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.Each Unit consists of one common share of the Company (each a \"Common Share\") and one-third of one common share purchase warrant (each whole warrant, a \"Warrant\") entitling the holder to acquire a Common Share at a price of $0.06 for a period of three years from the date hereof.The Company intends to use the net proceeds of the Offering to advance the Company's Shymanivske proje...