Black Iron announces the signing of a legally binding royalty agreement and offtake agreement with Anglo American for a US$4 million royalty investment, offtake rights and future potential construction prepayments.
Black Iron’s Shymanivske Iron Ore Project located in Kryvyi Rih, central Ukraine, will be developed in two phases – with Phase 1 producing approximately 4 million tonnes per annum and Phase 2 production increasing to approximately 8 million tonnes per annum.
Black Iron’s CEO Matt Simpson stated: “Black Iron is excited to welcome Anglo American as an investor and offtake partner given their extensive global experience in the mining sector. Raising US$4 million through a royalty structure relative to Black Iron’s current market capitalization without issuing additional shares to strengthen our finances during the ongoing war in Ukraine is a great outcome for shareholders”.
“The majority of the initial US$2.6 million of funds from the Transaction will be used to renew the permit for our Project which will expire six months after the end of martial law in Ukraine. Further, the future potential funding for project construction from such a highly credible mining company as Anglo American is important to demonstrate a clear path forward to build the Shymanivske Iron Ore project into an operating mine after the war in Ukraine comes to an end.”
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine.