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Black Iron Inc. Announces Arrangement to Develop Ukrainian Iron Ore Assets - Video News Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2013) - Black Iron Inc. (TSX: BKI) (Fr...
About this update from Black Iron Inc.
[{"type":"text","content":"\nBlack Iron Inc. Announces Arrangement to Develop Ukrainian Iron Ore Assets - Video News Alert on InvestmentPitch.comVancouver, British Columbia--(Newsfile Corp. - July 24, 2013) - Black Iron Inc. (TSX: BKI) \n(Frankfurt: BIN) has announced an arrangement to develop the company's Ukrainian \niron ore assets. Metinvest B.V., Ukraine's largest mining and steel producer, \nwill form a development arrangement with Black Iron and will make an initial \ninvestment of US$20 million in Black Iron's wholly-owned subsidiary, Black Iron \n(Cyprus) Ltd, to help fund the company's two Ukrainian projects, the Shymanivske \nProject and the Zelenivske Project, each located in Kryvyi Rih, Ukraine.\nInvestmentPitch.com has produced a \"video \nnews alert\" about Black Iron based on this news. If this link is not \nenabled, please visit www.InvestmentPitch.com and enter \"Black Iron\" in the search box.\n\nIf you cannot view the video above, please \nvisit:http://www.investmentpitch.com/video/0_t8ev4yg7/Black-Iron-Inc-TSX-BKI-announced-an-arrangement-to-develop-the-companys-Ukrainian-iron-ore-assets\nThe initial $20 million will give Metinvest a 49% shareholding \nof Black Iron (Cyprus), with no increase in shares outstanding in Black Iron \nInc. Black Iron will remain the operator and developer of both projects.\nEach of Metinvest and Black Iron will have the option to \nparticipate in the funding of the development of the projects based on its \nproportionate interest in Black Iron (Cyprus), or be diluted down. Using the \nprojected total capital investment requirements of US$1.094 billion, and \nassuming the development capital is 100% equity financed, Metinvest's future \ncapital contribution could increase by up to $536 million, for the development \nof the Shymanivske Project. For more information on this project, please refer \nto the company's Bankable Feasibility Study, which is available on Sedar.com.\nThe Bankable Feasibility Study outlines an operation producing \n9.2 million tonnes per year of high-grade 68% iron ore concentrate, projecting a \n45.9% internal rate of return, a US$3.5 billion net present value at an 8% \ndiscount rate and 2.2 year payback, for a capital investment of US$1.1 \nbillion.\nCompletion of this transaction is subject to receipt of all \nnecessary regulatory approvals, including the Government of Ukraine's \n...