Black Iron Submits Ukraine Government Investment Support Agreement

TORONTO, ON / ACCESSWIRE / July 17, 2023 / Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) is pleased to report the submission of a proposed legally binding special investment support agreement (the "Investment Agreement") to Ukraine's Ministry of Economy for consultation. The Investment Agreement includes transfer of lands required for location of the Shymanivske Iron Ore Project's (the "Project") processing plant, tailings and waste stockpiles, upon the end of martial law (the "Land Transfer").

The Investment Agreement is a relatively new Ukraine government initiative being led by the Ministry of Economy with the backing of the entire Cabinet of Ministers. There are many benefits for Black Iron to put an Investment Agreement in place, including most importantly having key Ministries in Ukraine's government approve this Investment Agreement to support the Land Transfer, rezoning, lease, and general implementation of the Project. The Investment Agreement also provides for meaningful exemptions from import duties on mine and processing plant equipment purchased. Having an Investment Agreement is also a prerequisite for the Company to apply for political risk insurance from the World Bank's Multilateral Investment Guarantee Agency ("MIGA"), which may be a condition required by banks and larger investors for future Project construction financing.

Submission of Black Iron's proposed Investment Agreement was a major undertaking that involved creation of a multi-hundred-page Ukraine feasibility study focused on the social and economic impacts of the Project, discussions with Ukraine's government to ensure Black Iron is a qualified applicant and obtaining updated letters of interest from investors proposing to fund future Project construction.

It is unclear as to how long Ukraine's Ministry of Economy will take to complete its review of Black Iron's Investment Agreement submission, given this will be one of the first applications. Subsequent to the Ministry of Economy's review and support, the Investment Agreement will then be provided to Ukraine's Cabinet of Ministers for approval and execution.

As of writing, Black Iron's Ukraine based team located in the city of Kryvyi Rih are all safe and in good health. Kryvyi Rih is located in the center of Ukraine, on the western side of the Dnipro River, and is where most of Ukraine's iron ore mines are located and continue to largely operate. Fortunately, there has not been any active fighting on the ground in this city, although there have been instances of missile attacks. Citizens have good access to groceries, gasoline, and banks in the city are functioning normally.