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Black Iron and Ukraine Agree on Terms for Land Transfer for Shymanivske Iron Ore project

Mining News - Published on Mon, 18 Nov 2019

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Black Iron Inc has achieved a major milestone in its Shymanivske project development by agreeing on terms with Ukraine’s Government to acquire a key parcel of land that is being used by Ukraine’s Ministry of Defense for location of Black Iron’s future processing plant, tailings and waste rock stockpiles. A Memorandum of Understanding was signed between Black Iron and Ukraine’s Ministry of Defense with support from Ukraine’s Prime Minister and Ministry of Economy offices. Pursuant to the MOU, the Ministry of Defense has agreed to transfer a 1,263 ha parcel of land adjacent to Black Iron’s Shymanivske ore body in exchange for a commitment from Black Iron to provide compensation that will largely be used to fund the construction of needed apartments for service men and women. The ultimate amount of compensation to be paid by Black Iron is currently being negotiated and will be finalized as part of entering into a binding agreement with the Ministry of Defense for the land transfer. Black Iron’s Preliminary Economic Assessment incorporates a reasonable amount of money, based on benchmarks of land value and precedent transactions, for the compensation to be paid to the Ministry of Defense within the USD 436 million estimated cost to construct its first phase 4 million tonnes per annum of production.

Black Iron is an iron ore exploration and development company that holds permits for the Shymanivske project located in Kryviy Rih, Ukraine which is ranked by CRU as lowest cost undeveloped iron ore project globally. The Shymanivske project is located in very close proximity to major infrastructure including railway, power, ports and skilled labour allowing for a relatively quick and low-cost construction. It contains a NI 43-101 compliant mineral resource estimated to be 646 million tonne Measured and Indicated mineral resources, consisting of 355 million tonne Measured mineral resources grading 32.0% total iron and 19.5% magnetic iron, and Indicated mineral resources of 290 million tonnes grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the Shymanivske project contains 188 million tonnes of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron.

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Posted By : Rabi Wangkhem on Mon, 18 Nov 2019
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