Business
Black Iron Receives Multiple Offtake & Investment Offers
TORONTO, ON / ACCESSWIRE / March 25, 2021 / Black Iron Inc. ("Black Iron" or the "Company"...
About this update from Black Iron Inc.
[{"type":"text","content":"Black Iron Receives Multiple Offtake & Investment OffersTORONTO, ON / ACCESSWIRE / March 25, 2021 / Black Iron Inc. (\"Black Iron\" or the \"Company\") (TSX:BKI)(OTC PINK:BKIRF)(FWB:BIN) is pleased to announce that it recently received several offers from well-known multibillion dollar companies interested in securing rights to purchase the planned initial four (4) million tonnes per annum of production from Black Iron's Shymanivske iron ore project (\"the Project\") at a slight discount to market price in exchange for making a significant investment towards project construction.Matt Simpson, Black Iron's CEO, commented \"it is exciting to see such strong interest from so many multi-billion companies interested to invest in the construction of Black Iron's Project in exchange for securing offtake rights. The bids received are in line with my expectations from this process and are reflective of the Project's strong economic return potential plus market shift to prefer high iron content ores that substantially reduce emissions in producing steel.\"These offers contain detailed terms on the various offtake agreements proposed, investment structure and quantum which are currently being analyzed by Black Iron's management in conjunction with its external investment advisor. Selection of the winning bidder will come down to balancing several factors that ultimately result in the greatest value creation for existing Black Iron shareholders. Upon selecting the preferred bidder, a period of exclusivity will be entered in to with this company during which binding contract terms and conditions will be finalized.Given the complexity of these bids, extensive investment modeling is currently being conducted and, in some cases, further clarifications are required from some of the bidders as is currently being sought. Black Iron remains on track to select a winning bidder which will be announced in the coming weeks.About Black IronBlack 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 grad...