ICYMI: Black Iron Appoints Financial Advisor
Black Iron Appoints Cutfield Freeman as International Financial Advisor TORONTO, May 21, 2019 (GLOBE NEWSWIRE) -- via NetworkWire Black Iron Inc. (Black Iron or the Company) (TSX: BKI; OTC: BKIRF; FRANKFURT: BIN), announces that it has appointed Cutfield Freeman & Co Ltd (Cutfield Freeman) as its international financial advisor to negotiate and structure funding for construction of its Shymanivske iron ore project (Shymanivske or the Project). On the back of signing a Memorandum of Understanding with Glencore that contemplates funding a significant portion of the cost to construct Shymanivske in exchange for securing offtake rights for up to the full phase one planned annual production of 4 million tonnes, there has been significant interest expressed from institutional equity and debt investors to potentially fund construction. Equity investors are attracted by the large gap in Black Irons current market capitalization as compared to its future potential and debt investors appreciate the strong economic returns when using very conservative long-term iron ore prices. Black Iron selected Cutfield Freeman after a comprehensive process undertaken by the company given their extensive experience in securing construction financing for junior mining companies and global reach, stated Black Irons CEO, Matt Simpson. Having very experienced mine finance Managing Directors located in Europe and Asia, where project financing is most likely to be sourced from based on interest shown to date, is critical to support our efforts to secure financing for construction of the Shymanivske Project. Cutfield Freeman will take on the role of global coordinator to progress already ongoing dialog with mainly European export credit agencies, international finance agencies and banks on debt financing, equity investment discussions with primarily Asian construction firms and funding in exchange for offtake with Glencore. Their mandate also entails reaching out to new potential investors including stream and royalty companies to secure the balance of funding required to construct Black Irons Shymanivske Project. Since it was established in 2000, Cutfield Freeman has successfully executed over 150 mine finance transactions in 50 countries. Tony Butler, Managing Director of Cutfield Freeman in London, stated, Shymanivske is an exciting project which will produce a premium product at low first quartile operating costs. Despite perceived challenges, Ukraine is an excellent low-cost jurisdiction for mining operations providing access to developed infrastructure and skilled labour. Shymanivske benefits from very close proximity to existing infrastructure including rail, power and ports which materially reduces up-front capital costs relative to comparable projects. The Projects strong economic returns and low cost, phased capital development will be very appealing to both equity investors and lenders. The appointment of Cutfield Freeman and the commencement of this construction financing mandate represents another major step forward in the development of Black Irons Shymanivske Project as we continue to move the project forward. https://mobile.tmxmoney.com/quote/readnews/?id=6033533041569573&symbol=BKI