DGAP-News

Black Iron Selects Cargill As Ukraine High-Grade Iron Ore Offtake Purchaser With a US$75M Finance Facility

DGAP-News: Black Iron / Key word(s): Miscellaneous Black Iron Selects Cargill As Ukraine High-Grade Iron Ore Offtake Purchaser With a US$75M Finance Facility 10.05.2021 / 07:18 The issuer is solely responsible for the content of this announcement.   BLACK IRON SELECTS CARGILL AS UKRAINE HIGH-GRADE IRON ORE OFFTAKE PURCHASER WITH A US$75M FINANCE FACILITY

For Immediate Release

TORONTO, ON, May 10, 2021 - Black Iron Inc. ("Black Iron" or the "Company") (TSX: BKI)(OTC PINK:BKIRF)(FWB:BIN) is pleased to announce that it has selected Cargill, Incorporated ("Cargill") for offtake rights on the initial four million tonnes per year of production from its Shymanivske iron ore project (the "Project") and a US$75 million finance facility to be used for Project construction.

Subject to completion of due diligence and successful conclusion of negotiations, Cargill will offtake the production and extend financing of US$75 million for the construction of the Project through a finance facility. Drawdown on this funding will be subject to certain conditions being met, as is customary for this type of transaction, mainly related to the Project being fully permitted and financed for construction. Black Iron and Cargill will now start work on definitive binding offtake and financing agreements which reflect the Proposal. Based on the proposal agreed between Black Iron and Cargill (the "Proposal"), the offtake agreement will be for an initial term of ten years and will include a profit-sharing component which will align the interests of both parties and thereby generate a strong interdependent relationship of benefit to both parties. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently ~$230 per tonne, and share with Cargill a portion of the incremental sale price of its 3% higher (68%) iron content and low impurity magnetite product.

Cargill's metals business ("Cargill Metals") focuses on iron ore and steel trading. Connecting iron ore miners around the world with steel mills and steel end users in key markets, Cargill Metals trades over ~50 million tonnes of iron ore per year and is also a strategic investor of a number of mining operations in North America and Northern Europe.

Black Iron and Cargill Metals agree that, as the world is becoming more environmentally conscious it will naturally turn to ores with a higher iron content and in forms such as pellets/pellet feed that reduce emissions in the production of steel.