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Black Iron and Ukraine agree on essential land transfer

Christian Fernsby |
Black Iron management have achieved a major milestone in its Shymanivske project development by agreeing on terms with Ukraine’s Government to acquire a key parcel of land that is being used by Ukraine’s Ministry of Defense for location of Black Iron’s future processing plant, tailings and waste rock stockpiles.

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A Memorandum of Understanding (the “MOU”) was signed between Black Iron and Ukraine’s Ministry of Defense with support from Ukraine’s Prime Minister and Ministry of Economy offices.

Pursuant to the MOU, the Ministry of Defense has agreed to transfer a 1,263 ha parcel of land adjacent to Black Iron’s Shymanivske ore body in exchange for a commitment from Black Iron to provide compensation that will largely be used to fund the construction of needed apartments for service men and women.

The ultimate amount of compensation to be paid by Black Iron is currently being negotiated and will be finalized as part of entering into a binding agreement with the Ministry of Defense for the land transfer.

Black Iron’s Preliminary Economic Assessment incorporates a reasonable amount of money, based on benchmarks of land value and precedent transactions, for the compensation to be paid to the Ministry of Defense within the $436 million estimated cost to construct its first phase 4 million tonnes per annum of production.

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