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7th Edition of the International exhibition of machinery, equipment and technologies for mining, coal and construction industry

See you after the victory! • Ukraine • Zaporizhia • Kozak-Palace Exhibition Center

The Canadian company will raise $ 1.5 million to develop ore deposits in Ukraine

News
Black Iron company is in search for finances for the Shimanovsky iron ore deposit development.
Канадська компанія залучить $1,5 млн на розвиток родовища руди в Україні - фото
 
The Canadian iron ore company Black Iron with assets in Ukraine announced its intention to implement private placement of up to 25 million units of the company at a price of $ 0.06 (CAD) per piece up to $ 1.5 million for the construction project of the company to produce concentrate on Shimanovsky deposit of iron ore, reports Interfax-Ukraine without intermediaries.
Each unit consists of one ordinary share and one half of the warrant for the purchase of the stock at a price of CAD 0.09 per share over the next three years.
In the event of an increase in the share price to CAD 0.15 and above and their maintenance at this level for 10 days, the company has the right to accelerate the date of implementation of the warrants up to 30 days from the moment of the corresponding notification. In addition, unit buyers are required to refrain from selling them within 4 months.
The raised money is planned to be used for the Shimanivske project (deposit) promotion, including the provision of rights for the land property, further negotiations on the financing of construction and provision of working capital.
The offer closing is expected on the 29th of March this year or even earlier.
As of October 2018, Black Iron's capitalization, according to its presentation, amounted to CAD 13.6 million.
Shimanovskoye field has 355 million tons of measured and 290 million tons of predicted resources, as well as 188 million tons of prognosed ones. The content of iron in measured resources is 32%, magnetite - 19,5%.
Black Iron estimates the necessary investments to launch the first stage of production of 4 million tons of iron ore raw materials with a content of iron 68% to $ 436 million (of which $ 260 million at the expense of export credit agencies and loans or bonds), and to increase capacity to 8 million tons in the second round in the amount of $ 312 million. The company counts on starting construction already in 2020.
Shimanovsky iron ore deposit is surrounded by five other active mining enterprises, including the ArcelorMittal iron ore complex. According to Black Iron, the existing infrastructure, including access to electricity, railways and port facilities, will allow the project to be implemented quickly to the production stage.
Earlier it was reported that the American industrial giant has doubled production space in Ukraine.