Black Iron Inc (TSE:BKI) (OTCMKTS:BKIRF) said Monday that it continued to make “good progress” in its discussions with potential partners interested in financing construction of its Shymanivske iron ore project in Ukraine.
The Toronto-based company said it is currently negotiating investment structure and terms with two construction companies who are interested in investing approximately US$60 million in exchange for the contract to build the mine.
Discussions are also going on with potential debt providers and some new and previously engaged European government-backed export credit agencies who can help lower borrowing costs by providing sovereign guarantees, Black Iron told shareholders in a statement.
READ: Black Iron welcomes comments from Ukraine president on its flagship Shymanivske iron ore project
The firm is in the midst of raising funds to construct Shymanivske, which boasts an NI 43-101 compliant mineral estimated of 646 million tonnes of higher confidence measured and indicated resources.
Initial capital costs are estimated around US$452 million, while the pre-tax net present value at a 10% discount is pegged at US$1.85 billion.
The company also said that steel mills and global trading houses interested to secure offtake rights to Black Iron's expected high grade 68% iron content concentrate are “closely watching” global travel restrictions in their home countries in anticipation of conducting their due diligence at Shymanivske after Ukraine announced its border reopening.
In addition to the update, Black Iron said it had reelected its five-member board of directors at its recent annual general meeting held today. Shareholders also approved the appointment of the company’s auditors.
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