Business
Black Iron Comments on Recent Share Price and Provides Construction Financing and Land Progress Update
TORONTO, ON / ACCESSWIRE / August 12, 2019 / Black Iron Inc. (“Black Iron” ...
About this update from Black Iron Inc.
[{"type":"text","content":"Black Iron Comments on Recent Share Price and Provides Construction Financing and Land Progress UpdateTORONTO, ON / ACCESSWIRE / August 12, 2019 / Black Iron Inc. (“Black Iron” or the “Company”) (TSX:BKI) (OTC:BKIRF) (FRANKFURT:BIN) continues to advance the Shymanivske Iron Ore Project (“Shymanivske” or the “Project”) towards construction with management efforts focused on securing funding for construction and land usage rights. The recent drop in share price is potentially attributed to a combination of shares from the April 2019 private placement (the “Private Placement”) becoming free trading and a decline in the global price of iron ore (important to note that the price is still up over 30% since the start of this year). Although Black Iron’s share price has increased since the Private Placement, the Company’s current market capitalization is a fraction of its future potential as shown in the chart below copied from the Company’s Preliminary Economic Assessment. Today’s benchmark iron ore price of ~$94 per tonne for product containing 62% iron (Black Iron plans to produce a premium priced 68% iron content product) is just off the top of the chart above which is used to show Black Iron’s exceptional projected financial returns across a range of iron ore prices. It is rare to find a project that provides such high financial returns at any realistic product sale price. Black Iron has such expected strong financial returns because of the relatively low cost of highly skilled labour in Ukraine and low cost of electricity coupled with very close distance to railway, powerlines and ports resulting in a lower up-front time and cost to construct.CONSTRUCTION FUNDING ADVANCINGIn September 2019, Black Iron management will be hosting a multibillion-dollar Asian construction company at site that have expressed an interest to invest approximately US$50 million in equity in exchange for being awarded the construction contract. This group has already completed a detailed review of the Shymanivske project resulting in a non-binding expression of interest including US$50 million funding offer being submitted.Black Iron’s financial advisor has reached out to several European export credit agencies and banks requesting expressions of ...