- Black Iron is working to fund the launch of its wholly owned Ukrainian iron ore project by the end of the year, recently closing a more than $1.5 million private placement
- Iron ore market prices continue climbing amid supply setbacks elsewhere in the world, and some analysts anticipate the possibility of $100 per metric ton soon
- Ukraine’s Kryvyi Rih region is one of the country’s most prolific for iron deposits, spawning a number of mines and processing facilities
Mine developer Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) continues to foresee a great potential opportunity in rising iron market prices as the company’s 100 percent-owned development project in Ukraine’s Kryvyi Rih region tries to secure essential land and funding for construction, and its efforts are gaining national media attention.
Black Iron’s work to start building a mine operation at its Shymanivske project is held up by the need to obtain the surface rights at the central Ukraine site. This includes land held by Ukraine’s Ministry of Defense (“MOD”) that is directly adjacent to Black Iron’s ore body. The MOD uses the site for training purposes, but it is in discussion with company management to relocate some of its facilities to free up sufficient land to meet Black Iron’s needs.
Iron ore prices have been on an upward trajectory because of production cutbacks related to short-term adverse natural events in Australia and the apparently longer-term disruptions in Brazil caused by the failure of a tailings dam at the beginning of the year and subsequent concerns about other dams in the region. Ongoing legal hurdles have continued to drive down output forecasts amid unsuccessful Vale SA (NYSE: VALE) efforts to resume iron ore operations (http://ibn.fm/jpzxN), fueling projections that iron ore could soon top $100 per metric ton.
Toronto-based industry publication The Northern Miner has followed developments in Kryvyi Rih, and last year’s report (http://ibn.fm/1JtWC), titled ‘Site visit: Black Iron advances Shymanivske premium iron ore project in Ukraine’, has been selected as a finalist in the inaugural National Magazine Awards launched by the National Media Awards Foundation to recognize excellence in business-to-business (B2B) journalism.
A panel of 62 judges nominated 95 entries from 34 B2B publications in more than a dozen categories, and the article on Black Iron’s progress is listed among nine finalists for the ‘Best Profile of a Company’ award (http://ibn.fm/1b1Qa). The winners will be announced on May 29 at the awards luncheon at Toronto’s One King West Hotel. Black Iron applauds reporter John Cummings for this story and wishes him luck at the awards.
Kryvyi Rih is one of Ukraine’s largest centers of metallurgical activity. The 62-mile long city is ringed by quarries, iron mines, steel and coke-processing facilities, given the region’s rich iron ore deposits. Black Iron has completed a NI 43-101-compliant resource report and a preliminary economic assessment, which estimates that the site has 646 million tons of measured and indicated mineral resources, plus 188 million tons of inferred resources supporting a 20-year mine life.
In April, the company upsized and closed the final tranche of a non-brokered private placement funding effort to raise over $1.5 million in favor of the project, which was labeled the lowest-cost undeveloped pellet feed project globally by metals consultancy CRU (http://ibn.fm/AMg9w). The main use of proceeds from this raise will be to secure funding from institutional investors that have expressed interest in backing construction of Black Iron’s Shymanivske project and land surface rights for the mine, concentrator, tailings and waste rock piles.
For more information, visit the company’s website at www.BlackIron.com
NOTE TO INVESTORS: The latest news and updates relating to BKIRF are available in the company’s newsroom at http://ibn.fm/BKIRF