Black Iron Secures Access to 20 Million Tonnes of Annual Rail Capacity With Executed Protocol Agreement
15 January 2014 - 4:05PM
Marketwired
Black Iron Secures Access to 20 Million Tonnes of Annual Rail
Capacity With Executed Protocol Agreement
TORONTO, ONTARIO--(Marketwired - Jan 15, 2014) - Black Iron Inc.
(TSX:BKI)(FRANKFURT:BIN) -
- Rail Protocol (Letter) of Intent Agreement Executed to Secure
Transfer of Up to 20 Million Tonnes of Iron Ore Annually
Black Iron Inc. ("Black Iron" or the "Company") through its
wholly owned subsidiary Shymanivske Steel LLC, an indirect,
wholly-owned subsidiary of Black Iron, has executed a Protocol of
Intent Agreement ("PIA") with SE Prydniprovska Zaliznytsia ("SE"),
the government agency accountable for Ukraine's railways,
guaranteeing access to their rail transportation network to
transport up to 20 million metric tonnes of iron ore annually from
Shimanivska Station near Black Iron's Shymanivske Project to
Chernomorska Station at Port Yuzhny, Ukraine. Although Black Iron
only requires approximately half of the initial 20 million tonne
capacity on the rail based on initial production plans, securing
this increased capacity provides flexibility to allow for potential
future expansion. The rail PIA takes effect immediately and remains
in place until a definitive commercial contract is signed, which is
expected to occur closer to the commencement of production in
mid-2015.
"We are extremely pleased to have executed this rail protocol
agreement, representing another significant milestone in the
continued development of our Shymanivske Iron Ore Project," stated
Matt Simpson, President and CEO of Black Iron. "This PIA confirms
Black Iron's access to the rail network, which when combined with
our previously announced PIA's for port facility access and power
supply means all three critical pieces of infrastructure required
to successfully operate an iron ore mine have been secured."
The rail PIA, along with the previously announced port PIA (see
press release dated September 16, 2013), provides Black Iron the
ability to access the global seaborne iron ore market and target
important growth markets of Turkey, the Middle East, India and
China, among others. The project's unique location also allows
Black Iron to target large end-users of iron ore in Europe and
Russia completely by rail. Both transportation options, along with
a third alternative of barging material on the Dnieper River, are
being considered by the Company and prospective off-take partners
for the Project.
Black Iron continues to progress on its timeline to production
having recently received approval from the Antimonopoly Committee
of Ukraine for the previously announced strategic investment and
development arrangement with Metinvest B.V. (see press releases
dated January 9, 2014). The Company will continue working together
with its local development partner to complete other PIA's for the
remaining core infrastructure needs such as water and land in the
near term.
About Black Iron
Black Iron is an iron ore exploration and development company,
advancing its 100 percent-owned Shymanivske project located in
Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant
resource, with 645.8 Mt Measured and Indicated mineral resources,
consisting of 355.1 Mt Measured mineral resources grading 32.0%
Total iron and 19.5% Magnetic iron, and Indicated mineral resources
of 290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using
a cut-off grade of 10% Magnetic iron. Additionally, the project
contains 188.3 Mt of Inferred mineral resources grading 30.1% Total
iron and 18.4% Magnetic iron. The project is surrounded by five
other operating mines, including ArcelorMittal's iron ore complex.
The Company believes that existing infrastructure, including access
to power, rail and port facilities, will allow for a quick
development timeline to production. Further, the Company holds an
exploration permit for the adjacent Zelenivske project, which it
intends to further explore to determine its potential. Please visit
the Company's website at www.blackiron.com, follow us on Facebook:
BlackIronInc or Twitter: @BlackIronBKI or write us at
info@blackiron.com for more information.
The technical and scientific contents of this press release have
been prepared under the supervision of and have been reviewed and
approved by Matt Simpson, P.Eng, President and CEO of Black Iron
Inc., who is a Qualified Person as defined by NI 43-101. For
further information, please see the technical report of the
Company, which is available on SEDAR at www.sedar.com.
Forward-Looking Information
This press release contains forward-looking information.
Forward-looking information is based on what management believes to
be reasonable assumptions, opinions and estimates of the date such
statements are made based on information available to them at that
time, including those factors discussed in the section entitled
"Risk Factors" in the Company's annual information form for the
year ended December 31, 2011 (and dated March 26, 2012) or as may
be identified in the Company's public disclosure from time to time,
as filed under the Company's profile on SEDAR at
www.sedar.com. Forward-looking information may include, but is
not limited to, statements with respect to the execution of a
commercial agreement on terms acceptable to the Company, the effect
of this PIA of the Company and its project, the future financial or
operating performance of the Company, its subsidiaries and its
projects, the development of and the anticipated timing with
respect to the Shymanivske project, the ability to obtain
financing; and the impact of concerns relating to permitting,
regulation, governmental and local community relations. Generally,
forward looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved".. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration
activities; other risks of the mining industry and the risks
described in the annual information form of the Company. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
Black Iron Inc.Michael McAllisterManager, Investor Relations+1
(416) 309-2950info@blackiron.comBlack Iron Inc.Matt
SimpsonPresident & Chief Executive Officer+1 (416)
309-2138www.blackiron.com
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