• Legislative changes have increased the popularity of cannabis products in the U.S. and Canada; as a result, consumers have started looking for high quality and premium-grade developments in the field
• Green Hygienics Holdings is investing in innovative cultivation practices that ensure both the quality and the yield of cannabis
• The company focuses on premium cannabis-derived products obtained via proprietary aeroponics cultivation technology that comes with record low production costs

As the legal cannabis sector expands, competition between companies in the field is also intensifying, with producers and distributors constantly looking for some competitive advantage in order to secure a solid market position. New technologies, especially in regard to cultivation processes, can provide this much sought-after advantage.

One company capitalizing on a proprietary cultivation technique is Green Hygienics Holdings Inc. (OTCQB: GRYN). The company is investing in innovative cultivation technologies that maximize yield and reduce the cost of production – two advantages that give Green Hygienics a unique position on a market that’s defined by a growing demand for premium-grade cannabis products.

Green Hygienics Holdings is quickly establishing itself as a leader in the advancement of science-driven cultivation systems. The company employs a unique aeroponics-based cultivation method through which nutrients are delivered to the exposed roots of the plant. Apart from increasing crop yields, this cultivation method is highly environmentally-friendly. According to Green Hygienics Holdings, aeroponics cultivation uses anywhere between 90 and 95 percent less water than standard agricultural practices. Pesticides and fungicides are also not required.

On top of being more sustainable, this cultivation technique reduces the cost of cannabis production, produces higher yields, ensures better quality and provides more control over the entire process.

As the cannabis market is still relatively young but constantly growing, competition is also intensifying considerably. According to experts, production efficiency and low costs are going to be the primary factors determining the success of cannabis producers in this high-competition environment.

Both of these goals can be accomplished through the adoption of innovative solutions like those used in the Green Hygienics Holdings cultivation methodology. The cost per unit for Green Hygienics Holdings’ production is less than $1. The industry standard for traditional cultivation is anywhere between $2 and $4 per unit.

On top of relying on innovative cultivation, Green Hygienics also invests in the technology that provides a greater degree of control over many aspects of the process.

Quality-controlled commercial cultivation equipment and software provide Green Hygienics with data that can be used to monitor and control the growth of cannabis. Cultivation problems are easy to identify this way, which results in the introduction of immediate measures to rectify the issue.

Green Hygienics expects these innovations to enable to meet its growth goals in 2019. The company intends to continue generating revenue from the cultivation and sale of premium-grade cannabis-derived products. Previously, Green Hygienics announced its intentions to develop and license additional intellectual property assets, make strategic acquisitions and develop globally-trusted consumer brands.

For more information, visit the company’s website at www.GreenHygienicsHoldings.com

• Sproutly Canada focusing on recreational cannabis beverage, edibles market as effective alternative to smoked weed
• Cannabis-infused beverage market expected to net revenues between $900 million and $4.4 billion by 2024
• Sproutly building on initial harvest success with planting in remaining Toronto facility flower rooms as it awaits license amendment, new market legalization

Sproutly Canada Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G) is strengthening its cannabis beverage and edibles supply operations as Canada, where it is based, proceeds from legalizing recreational cannabis use for adults last year to legally licensing cannabis edibles and beverages later this year.

Canada’s efforts to establish policy structures for use of the green plant’s long-touted medicinal and relaxing properties, overturning decades of drug war directives, has given it a groundbreaking stature amid the increasingly fertile popular culture granting new acceptance to marijuana and hemp products.

Since listing on the OTC and Canadian exchanges last year, Sproutly Canada has added experienced executives, built its supply networks and increased its output capability in its drive to create the first natural, truly water-soluble cannabis solution that mimics the rapid onset and rapid wear-off effects of inhaled cannabis without the detrimental effects of smoking the product.

A February 13 news release noted additional recent developments in the company’s build-up strategy, including the first two successful harvests of its premium quality, small batch cannabis at its state-of-the-art production facility in Toronto and the migration of its ACMPR license to Canada’s Cannabis Act, which allows it to sell cannabis to other licensed producers (http://ibn.fm/sBISU).

“We are very happy with the results of our first two harvests, which produced highly efficient yields for an initial grow,” Sproutly President Bryan Semkuley stated in a news release. “This is a tremendous milestone for the company, as these harvests are the first step toward our production objectives. We are on track to meet our calendar 2019 production targets and expect multiple successful harvests as we continue to build on this initial success.”

The company is working to produce the same measure of success in the remainder of its 12 flowering rooms at the Toronto Herbal Remedies production facility as the company begins introducing plants in the other rooms this month, planting a new room each week as part of its strategy to maintain a perpetual harvest.

The company has received license amendments allowing it to use the entire THR facility for growing and cultivation operations, and its executives submitted another amendment request in November to allow it to produce cannabis oils through extraction and research operations.

Sproutly’s acquisition of Infusion Biosciences Canada Inc. granted it exclusive access to Infusion’s patent-pending APP Technology, which gently recovers 85 to 90 percent of the total bioactive cannabinoids in plants, including water-soluble cannabinoids and natural oils.

The company is analyzing the benefits of partnering with existing beverage brands, as well as launching its own portfolio of beverages, as it awaits legalization of that market.

“Sproutly has made significant progress towards building a world-class cannabis beverage and infused product company since going public in July of last year,” CEO and Director Keith Dolo stated in the news release.

Analysts at Deloitte peg the potential revenues for the cannabis-infused beverages market at somewhere between $900 million and $4.4 billion by 2024, depending on the percentage of the market that it captures (http://ibn.fm/im9JW). Sproutly’s products have the potential to set their own bar as part of a premium market.

For more information, visit the company’s website at www.Sproutly.ca

• PLUS was the top-selling cannabis-infused brand in California, according to Q4 2018 statistics
• PLUS had three best-selling branded products during that period
• Company widens its position as the market leader, expects momentum to continue in 2019

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) has expanded its leading position in California’s cannabis-infused edibles retail market, with the company now boasting three of the segment’s top five products, according to sales data from BDS Analytics (http://ibn.fm/bL2d6).

PLUS had three best-selling branded products in all categories studied, including vaporizers, flower and edibles and topicals. The company’s Uplift and Restore scored as best-selling stock keeping units (“SKUs”), while its CBD Relief placed number five in best-selling SKUs and was first among CBD-only SKUs.

These statistics reinforce the leadership position of PLUS after it achieved first position in the third quarter of 2018, according to BDS Analytics. During that period, Sour Watermelon Gummies and Blackberry and Lemon Gummies placed in the top two positions across all categories (http://ibn.fm/mTDOI).

In a news release, PLUS CEO Jake Heimark said, “We are proud that we have not only maintained but continued to grow our position as the market leader in Q4. We hope to continue this momentum into 2019, not only in California but in other jurisdictions as well.”

PLUS is a cannabis-infused, branded-products manufacturer selling to regulated medicinal and adult-use recreational markets. PLUS produces product in its 12,000-square-foot cannabis facility in Adelanto, California, and it is focused on building the largest cannabis brand by growing organically and through acquisitions.

For more information, visit the company’s website at www.PlusProducts.com

• Company recently announced significant findings of cardiovascular performance improvements with TurboCBD
• Lexaria plans additional human clinical trials of CBD
• Company is now moving forward with clinical studies on oral forms of nicotine delivery following a large investment agreement

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) is a food bioscience company that developed and commercialized cost-effective drug delivery platform DehydraTECH. This technology enhances the performance of beneficial compounds in ingestible products. Currently, Lexaria has patents pending worldwide for use of the technology in a range of bioactive molecules, including cannabinoids, nicotine, NSAID pain relievers and more. Leveraging this platform, the taste, smell, speed of action, bioabsorption and bioavailability of oral ingestion is improved without the harmful practices of lighting up or the unhealthy additions of sugars and sweeteners. The company licenses DehydraTECH to other companies around the world to enhance already established, quality product lines.

TurboCBD is Lexaria’s proprietary DehydraTECH-powered, CBD-fortified hemp-oil capsule. The capsules are formulated with full-spectrum hemp oil, ginseng and ginkgo for enhanced focus and memory. They are marketed as a mental and physical boost aimed at helping to remove brain fog, fatigue and stress. TurboCBD is molecularly engineered for quick and high absorption rates into the circulatory system.

In a recent press release (http://ibn.fm/OwOtT), Lexaria announced that the results from a healthy-human clinical trial provided evidence that a single 90mg dose of TurboCBD resulted in lower blood pressure, higher blood flow to the brain, faster delivery onset of CBD into the bloodstream and larger quantities of CBD within the blood as compared to an equal dose of generic CBD. Due to the positive results of this study, the company plans to conduct additional human clinical trials over the course of the next year using DehydraTECH in CBD.

A comprehensive series of clinical studies will also continue on oral forms of nicotine delivery. Lexaria Nicotine LLC, a wholly owned subsidiary, has entered into an investment agreement that will provide an initial $1 million, with additional funding of up to $12 million, toward the research and development of nicotine consumer products enhanced by DehydraTECH.

DehydraTECH is an enabling drug-delivery platform with relevance across multiple industries. The company utilizes subsidiaries that reach across industry lines, making it accessible to the medical and recreational cannabis industries and pharmaceutical sectors. The company has formed a partnership with one of the world’s largest tobacco companies (http://ibn.fm/v91xQ). Currently, Lexaria owns 10 patents with over 50 patents pending worldwide for this revolutionary technology. Lexaria is ahead of the game, doing business on its terms and attracting the attention of Fortune 500-type corporations.

For more information, visit the company’s website at www.LexariaBioscience.com

• CIIX recently established a new website to present its domestic CBD line and offer consumers one-stop shopping convenience
• CIIX’s CBD Biotechnology Co. Ltd has a separate line designed for the Chinese market
• CIIX CEO says that additional opt brand industrial hemp-infused CBD products will be developed and introduced

ChineseInvestors.com Inc. (OTCQB: CIIX) has moved to rebrand subsidiary ChineseHempOil.com Inc.’s consumer products line under the new ‘opt’ brand. The brand unifies its domestic industrial hemp-infused consumer products and features two lines: opt Hemp and opt2mist (http://ibn.fm/7IU4K).

The opt Hemp currently line includes gummies, oils, soft gels and cosmetics. It also consists of other hemp-derived CBD products in development.

The company’s opt2mist is a spray-vitamin line of products in development that will also include full-spectrum, hemp-derived CBD-infused formulas.

In a news release, CIIX CEO Warren Wang stated, “The unification of our domestic consumer products under the opt brand is a step in the right direction to building optimal brand recognition as we continue to roll out our new industrial, hemp-infused CBD products and other health and wellness products, such as the opt2mist sprays, throughout 2019 and beyond.”

CIIX has also set up a new website, www.365CWC.com, to present the products with brand appeal. “The consolidation of our domestic consumer sites into a single channel will provide a one-stop shop for busy consumers, which, in turn, we believe will ultimately drive sales,” Wang added.

CIIX’s wholly owned foreign entity, CBD Biotechnology Co. Ltd., has separate products created for the Chinese market. These include a skin care line featuring the Live Oxygen luxury products and CBD Magic Hemp series, plus its self-branded, hemp-infused rice wine, CBD Biotech Hemp Wine. Live Oxygen and Magic Hemp are featured on e-commerce site Alibaba, which has 500 million registered users.

For more information, visit the company’s website at www.ChineseInvestors.com

• ETST recently announced a distribution agreement to market Hygee in Vietnam
• The company also provided an update on the its CBD product line
• ETST signed agreements with CannaBiz Deals and Desert Sun Distribution to distribute its CBD line throughout the United States
• Company’s white labeling initiative is now in progress

Florida-based biotech company Earth Science Tech Inc. (OTCQB: ETST) is focused on cannabis, industrial hemp and cannabinoid research and development; nutraceuticals; pharmaceuticals; and medical devices. The company operates through four wholly owned subsidiaries:

• Earth Science Pharmaceutical Inc. develops low-cost, noninvasive diagnostic tools, medical devices, testing processes and vaccines for STIs (sexually transmitted infections and/or diseases).
• Cannabis Therapeutics Inc. is poised to become a world leader in cannabinoid research and development for a broad line of cannabinoid-based pharmaceuticals and nutraceuticals, as well as other products and solutions.
• KannaBidioid Inc. is focused on the recreational space to manufacture and distribute vapes/e-liquids and gummy edibles featuring its unique Kanna and CBD formula.
• Canna Inno Laboratories Inc. provides ETST a foothold in Québec and access to government grants, the first of which has just been approved.

The company is nearing completion of its first commercial batch of Hygee, a new original medical device to fight STIs. This self-sampling kit provides women with a discreet and effective way to anonymously test for STIs such as chlamydia. Since chlamydia infections can be passed from mother to infant during childbirth, this test has the potential to revolutionize women’s health. Approximately eight million women give birth every year in the areas that Hygee will first be offered, including the United States, Canada, Brazil, Mexico, Morocco, Djibouti and Vietnam (http://ibn.fm/FjacD).

Queen Concept Inc. will be the exclusive distributor of Hygee in Vietnam for the next five years, according to a new distribution agreement with ETST (http://ibn.fm/HWfW9). In Vietnam, approximately 7.5 million women fall within the demographic of those recommended to test for chlamydia every year. This demographic includes pregnant women and sexually active women who are between the ages of 15 and 25.

“We are ready to export Hygee in Asia and the Middle East — starting with Vietnam — which will act as a proving ground for the coming introduction of Hygee in the other countries we will target,” ETST Chairman Nickolas Tabraue stated in a news release. “Our testing protocols are ready to conduct high throughput screening for genital chlamydia anywhere around the world.”

The company also announced the upcoming launch of three CBD products (http://ibn.fm/PHTF1). The first of the products will be PropoDiol throat spray. ETST worked with Laboratoir Binatus Pharmacognosique Inc. to improve the existing Propovit throat spray. The main ingredient of the spray is propolis, a compound derived from the Brazilian green bee. The new formulation combines the strong antioxidants and potent antibacterial, antiviral, antifungal and anti-inflammatory properties of propolis with ETST’s full-spectrum cannabinoids. The result, PropoDiol, is a CBD-enriched, strawberry-flavored throat spray.

In early February 2019, a press release (http://ibn.fm/ovj3l) announced that the company has signed agreements for CannaBiz Deals and Desert Sun Distribution to distribute its CBD line through pharmacies, chiropractors, dispensaries, athletic clubs and clinics in the United States. David Barbash, ETST’s chief sales officer, has implemented broad strategies to expand the company’s sales team to explore product placement. Barbash has stated that these new distribution agreements “are only a fraction of the opportunities we see for our CBD products.”

In addition, ETST is collaborating with its manufacturing partner to launch a white labeling initiative. The white label will allow other marketers to rebrand ETST’s High Grade Full Spectrum CBD line. For the last three quarters, the company’s sales have increased more than 100 percent every month, and ETST notes that inquiries regarding white labeling have been on the rise.

Tabraue added, “We have a lot of opportunity on deck for 2019, and we look forward to sharing the results of our strategies.”

For more information, visit the company’s website at www.EarthScienceTech.com

• SING’s strategic entry into the legal cannabis industry was boosted by U.S. legalization of hemp
• Subsidiary SingleSeed.com is targeting the multibillion-dollar global pet care market with its best-selling Phyto-Bites CBD for all sizes of dogs
• SinglePoint begins busy 2019 trade show circuit at CHAMPS premier counterculture B2B expo in Las Vegas, February 27-March 1

SinglePoint Inc. (OTCQB: SING), a technology company providing mobile payments and ancillary cannabis services, is positioned to take advantage of the newly legalized U.S. hemp industry with its growing portfolio of hemp and cannabidiol (“CBD”) products, available through subsidiary SingleSeed.com. In an investor update, SinglePoint President Wil Ralston shared the company’s immediate plans to expand its offerings in the CBD space, which has seen a significant boost since the 2018 Farm Bill passed Congress and was signed by President Donald Trump (http://ibn.fm/NXAJE).

“We’ve been getting so many calls about CBD and isolate products. SingleSeed has really started to ramp up the amount of sales we’ve seen come through the ecommerce channel,” Ralston told investors in a video update. “It’s been an exciting time. We’re seeing more sales and increased inquiries about CBD products, especially isolate. We’re doing a wonderful job of connecting different entities together for the purchase and sale of isolate, which is great. It’s opening doors for a lot of relationships.”

SinglePoint is exploring opportunities to produce industrial hemp through joint venture opportunities with agricultural growers. The company has also placed an investment in a program that would grow hemp strains of CBD in a photobioreactor as an initiative to reduce the cost and time involved in making a potentially pharmaceutical-grade product (http://ibn.fm/USW2X).

SinglePoint’s best-selling CBD product to date on its SingleSeed ecommerce platform is Phyto-Bites, Ralston said. Phyto-Bites are a soft chew, branded product formulated to reduce stress, pain, separation anxiety and inflammation – particularly for dogs. The company is working with manufacturer CBD Unlimited (formerly Endexx) to distribute the product online and in stores across the nation (http://ibn.fm/QDbpv). A recent Grand View Research report estimates that the global pet care market could reach $202.6 billion by 2025 (http://ibn.fm/kqcfT).

“We’re very excited about that and look forward to adding additional products to our bag for both retail stores and our online channels,” Ralston said of the increasing demand for Phyto-Bites, which necessitated hiring additional people to help fulfill the amount of sales coming through the online portal.

SingleSeed provides various services to cannabis enterprises, becoming a hub for dispensaries seeking merchant payment processing solutions and other business tools. Through SingleSeed.com, SinglePoint offers payment processing and text message marketing solutions that are specifically designed for cannabis businesses (http://ibn.fm/grYm6).

Ralston said that SinglePoint is receiving a lot of inquiries about distribution and is making inroads into the retail sector. The company is putting the finishing touches on a wholesale agreement for a distributor that is working from Fresno to Sacramento, California, with 120 distribution points. SinglePoint management plan to attend multiple tradeshows throughout 2019, with the first of many appearances scheduled in Las Vegas, February 27 to March 1, at CHAMPS, the premier counterculture B2B expo since 1999 (http://ibn.fm/1ewZF).

“We’ll have a booth there and we’re looking forward to making a lot of relationships,” Ralston noted. “Hopefully we’ll see some of you all there and have some great conversations about what SinglePoint has been doing and some of our subsidiaries, such as SingleSeed, and their growth potential.”

For more information, visit the company’s website at www.SinglePoint.com

• Therma Bright’s products target the multi-billion dollar skin care device market
• Its non-invasive, pain-free skin care offerings are based on proprietary technology
• Therma Bright currently has two products on the market, plus an additional one in development

Therma Bright Inc. (TSX.V: THRM) (OTC: THRBF) concentrates on providing first-rate medical devices that address dermatological needs. At present, the company has two products on the market and one in the research and development phase. Its portfolio includes products, devices and treatments that have cosmetic and medicinal or therapeutic benefits. Based in Toronto, Ontario, Therma Bright has significant investments in intellectual property and R&D.

Therma Bright’s products target the $10.7 billion skin care device market. Moreover, regarding the overall dermatology market, as reported by MarketResearch.com (http://ibn.fm/adccJ), “…the US has the largest market for dermatology and is also forecast to be the leading market through 2028; GMR Data forecasts $12.3 billion in 2018 growing to $22.6 billion in 2028.” In addition, Medgadget (http://ibn.fm/mHTAq) noted that, “…the global dermatology devices market is expected to grow at a CAGR of 11.4% between 2018 and 2025.”

The foundation of Therma Bright’s non-invasive, pain-free skin care offerings is proprietary technology that has received class II medical device status from the U.S. Food and Drug Administration (“FDA”). The company’s products include the InteceptCS Cold Sore Prevention Device and the TherOZap Insect Bite Treatment Device. One focus of Therma Bright’s products, devices and treatments is providing relief of pain, itch and inflammation resulting from over 20,000 kinds of insect and marine life bites and stings.

The InterceptCS Cold Sore Prevention System provides controlled topical heat without the risk of burning the skin, and its controlled range of heat naturally prevents cold sore eruptions*. The system consists of an ergonomically designed hand-held unit and a disposable treatment activator (http://ibn.fm/z1Q1p). InterceptCS is a high gross margin product. Therma Bright recently redesigned a multi-use activator for the legacy product, which launched formerly with Canada’s largest pharmacy chain and included two free single-use activators (http://ibn.fm/nfDUL).

The first-generation TherOZap Insect Bite Treatment Device received FDA approval as a class II medical device for the relief of the symptoms of pain, itch and inflammation associated with insect bites and stings. Therma Bright has been working with engineers and designers to complete a TherOZap prototype. This prototype will be tested for effectiveness against the Zika virus, as well as other mosquito-borne diseases (http://ibn.fm/PibsP).

Furthermore, Therma Bright is focusing on designing and developing a thermal therapy pain relief device using medicinal cannabis or cannabidiol from hemp in the form of gels or creams (http://ibn.fm/Llyog). The company recently announced that it will incorporate a 100 percent wholly owned subsidiary to hold device-related technology for the application or use of medicinal or recreational marijuana (http://ibn.fm/EpNQS).

Therma Bright is ahead of the curve as it works to build recurring revenue streams from its products while incorporating intelligent technology such as AI and IoT. With a current emphasis on marketing its products online via different social media networks, Therma Bright is steadily advancing its growth initiatives. For investors, the company offers the opportunity for return on investment from the burgeoning skin care device and dermatology markets.

For more information, visit the company’s website at www.ThermaBright.com

* Based on double blind placebo study the InterceptCS is approved for the claim “For prevention of cold sores when used within 3 hours of the onset of the prodrome” by Health Canada. The InterceptCS is not approved by the United States FDA for any claim of clinical indication, clinical efficacy and/or cure or prevention of disease.

• CEO Warren Wang discussed time with CIIX
• Spin-off of CBD, hemp products nearing completion
• CIIX went from nearly bankrupt to becoming publicly traded; Wang invested directly and looks forward to a promising future

CEO Warren Wang of ChineseInvestors.com Inc. (OTCQB: CIIX) recently shared, on MoneyTV with Donald Baillargeon, his journey with the company since its founding in 1999 and his commitment to continually building success for decades to come. The full interview can be found at www.MoneyTV.net under past shows.

In addition to providing a brief update on where the company’s spin-off for CBD Biotech stands, Wang shared the company’s growth and progress over the last 20 years. Once on the brink of bankruptcy, CIIX is now a successful publicly traded company in the process of writing a Form F-1 for a potential uplisting to the Nasdaq.

CBD Biotech is a wholly owned CIIX subsidiary, and its proposed spin-off is expected to allow ChineseInvestors.com to return to its original platform of developing proprietary financial news media and content targeting the global Chinese-speaking community. The spin-off includes the appointment of CFO Alex Hamilton, whose primary focus is on providing CBD-related products to China’s mainland population (http://ibn.fm/eHVNT). The spin-off is nearing completion, as it now has legal counsel and a broker dealer, and CBD Biotech is close to finalizing with an auditing firm and forming a board of directors.

After a brief update on where CBD Biotech and CIIX are headed, Wang focused on how far the company has come. Wang has been with the company since its beginning in 1999. He noted that in its early years, CIIX had troubled times, facing bankruptcy as shares were diluted by investors from over 60 percent down to 10 percent. Since then, Wang has led the company back to its current solid position, investing directly in it himself on the open market.

Per the interview, Wang prides himself on his loyalty and dedication to CIIX and is looking forward to spending the next 10 to 20 years with the company.

For more information, visit the company’s website at www.ChineseInvestors.com

• Recent dam failure and closure of 11 mines by leading iron ore producer Vale lowered supplies worldwide, raising prices
• Black Iron is developing the Shymanivske iron ore deposit in Ukraine to produce cost-effective, high grade pellet feed containing 68 percent iron
• Black Iron’s iron pellet feed product is expected to sell for a significantly higher price than benchmark iron ore for at least the next two to three years

Recent supply-side shortages and the resulting tightness in the world’s iron ore market are seen as solid reasons for investors to keep a close eye on Canadian iron ore exploration and development company Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) as it brings its premium, high-grade iron ore Shymanivske Ukraine project to life. Black Iron’s Shymanivske project is situated in the southern part of the historic KrivBass iron ore mining district, a highly developed iron ore mining region with well-established infrastructure and nearby skilled labor forces. Surrounded by five producing iron ore mines, the Shymanivske project is expected to produce an ultra-high-grade, 68-percent iron ore concentrate with few impurities at very low cost (http://ibn.fm/6MXdh).

The January 25 disaster at the tailings dam at Vale SA’s Corrego do Feijao iron ore mine in Brazil’s mining heartland of Minas Gerais remains in the news as officials search for the missing and tally up the dead. Since the initial incident, involving Vale’s second-largest iron ore mine, Vale, the world’s top producer of iron ore, has announced supply cuts of up to 70 million tons, leading to a steep rise in benchmark spot prices, according to an article on Mining.com (http://ibn.fm/QpMuc). Many iron ore mining companies have also experienced a significant increase in share prices.

Brazil’s government on February 18 banned new upstream mining dams and ordered the decommissioning of all such dams by 2021, targeting the type of structure that burst last month, killing hundreds of people. Iron ore prices are expected to remain high for some time, with the market still focused on the impact of the loss of some supply from Brazil, as Reuters noted in a February 18 article (http://ibn.fm/ozFuE).

Black Iron recently reaffirmed economic projections for its Shymanivske project in a news release (http://ibn.fm/YDhyc), noting that the premium 68 percent iron pellet feed product that Black Iron plans to produce is expected to sell for a significantly higher price than benchmark iron ore for at least the next two to three years. The company intends to build its Shymanivske project in two phases, taking advantage of its proximity to rail, power, ports and skilled labor to reduce the upfront capital and time required to generate cash flow (http://ibn.fm/ItKdF).

A capital investment of $436 million is required for the first phase of the Shymanivske project, which is expected to produce four million tonnes per year. An additional $312 million is required to double the production capacity of the Shymanivske project to eight million tonnes per year, and this could potentially be fully funded from the free cash generated by phase 1 production. Iron ore concentrate is one of the key resources required by the steel industry. Black Iron’s concentrate can be used both in sinter and highly valued pellet production. Prior to the latest Brazilian development, there was already a shortage of pellet feed. The supply/demand gap is set at 133Mt against the current base of approximately 400Mt consumed by 2035. According to Zion Market Research, the global iron ore pellet market was valued at $25.22 billion in 2017 and is expected to reach $50.12 billion by 2024 (http://ibn.fm/zJN4o).

The technical and scientific contents of this article 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, visit the company’s website at www.BlackIron.com