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Black Iron intends to complete feasibility study of Shymanivske Iron Ore Project in early 2022

KYIV. Sept 13 (Interfax-Ukraine) – Canadian mining company Black Iron Inc. with assets in Ukraine expects Wood Plc to complete a feasibility study of Shymanivske Iron Ore Project in early 2022, the company said in a press release on Monday.

"Work is currently focused on finalizing the process design criteria, overall site layout, mine equipment selection and pit shell optimization. The next steps entail finalizing the mass and energy balance and the process flow diagrams, followed by major equipment sizing upon which requests for price quotations will be sent to equipment suppliers," the press release said.

It is noted that solid progress is being made by Wood on the Project’s feasibility study on the Environmental & Social Impact Assessment (EISA) which is a prerequisite to entering binding agreements. Efforts are currently being made to locate Black Iron’s future processing plant, tailings, waste rock stockpiles and the defence training grounds to minimise the impact on the environmental and local communities while ensuring the Project’s viability.

In addition, the company said that discussions with Cargill on a very complex offtake binding agreement have been very positive and productive to date with the majority of the commercial terms having been settled and only a few key outstanding items left to resolve. The Company expects to complete these discussions shortly and will provide an update once a binding agreement is executed.

At the same time, the reshuffle in the Ministry of Defense has caused a delay in resolving the issue of transferring a land plot (from the Ministry of Defense) for development, Black Iron points out.

The company also informed that it has entered into a memorandum of understanding with UkraineInvest which is the branch of Ukraine’s government tasked to negotiate investment agreements.

As for royalty and debt financing, the company said that the next step is for independent engineers, marketing, tax and legal advisors to be engaged to conduct due diligence on behalf of the investors. "This will likely commence prior to year end as further progress needs to be made on the feasibility study and EISA to ensure an efficient review given Black Iron needs to pay the costs for this diligence on behalf of the investors as is customary," the press release said.