Royalty investment of US$4 million strengthens Black Iron’s balance sheet
Anglo American secures offtake rights to at least 2.4 million tonnes per year for life of mine
Black Iron Inc. (“Black Iron” or the “Company”) (TSX:BKI)(OTC PINK:BKIRF)(FWB:BIN) has announced 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. This agreement will benefit Black Iron’s Shymanivske Iron Ore Project in Kryvyi Rih, central Ukraine, which will be developed in two phases.
Black Iron’s Project is set to produce ultra-high-grade ~68% iron, positioning it to meet the increasing global demand for green steel. The initial phase will produce 4 million tonnes per annum, with Phase 2 ramping up production to 8 million tonnes per annum. Anglo American has secured offtake rights to at least 2.4 million tonnes per year for the life of the mine, with first offer and refusal rights to secure additional offtake rights in exchange for funding at least 15% of the construction costs for each phase of the project.
This significant investment and partnership with Anglo American will not only strengthen Black Iron’s balance sheet but also ensure the long-term success and sustainability of the Shymanivske Iron Ore Project. With a solid offtake agreement in place and a reliable partner in Anglo American, Black Iron is well-positioned to capitalize on the growing demand for high-grade iron ore in the global market.
Impact on Me
As an individual investor, this investment by Anglo American in Black Iron signifies a vote of confidence in the company’s project and potential for growth. It also indicates stability and long-term viability for Black Iron, which could positively impact the company’s stock performance and overall value.
Impact on the World
The partnership between Black Iron and Anglo American to develop the Shymanivske Iron Ore Project will not only contribute to meeting the global demand for green steel but also boost the economy of Ukraine through job creation and increased production. Additionally, the high-grade iron ore produced by the project will play a crucial role in the transition to a more sustainable and environmentally friendly steel industry worldwide.
Conclusion
In conclusion, the royalty investment and offtake agreement between Black Iron and Anglo American represent a significant milestone for the Shymanivske Iron Ore Project. This partnership will not only strengthen Black Iron’s financial position but also contribute to the sustainable production of high-grade iron ore to meet the growing demand for green steel globally. With a solid foundation in place, Black Iron is poised for success in the iron ore market.
