|By Marketwired .||
|January 15, 2014 12:05 AM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/15/14 -- 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 [email protected] 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.
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.