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Stockhouse Logo Search Companies, etc News Press Releases Black Iron Offtake, Construction And Land Transfer Update 45 minutes ago TORONTO, ON / ACCESSWIRE / October 13, 2020 / As an update on Black Iron Inc.'s ("Black Iron" or the "Company") (TSX:BKI) formal offtake process that was previously announced, multiple groups participated in the first round resulting in the Company receiving expressions of interest to invest in exchange for securing offtake rights. Offtake allows the investor to secure the rights to purchase Black Iron's initial entire expected annual production of 4 million tonnes of pellet feed at a slight discount to market price, in exchange for making an investment towards construction of the Shymanivske iron ore project (the "Project"). These proposals are currently being reviewed and selected groups will be invited to participate in the second round, which includes access to a more detailed data room and ability to conduct site visits - either virtually or in person - pending travel constraints and personal preferences. Upon completion of the second round early next year, binding submissions to invest and secure offtake rights will be sought. The company looks forward to a successful round two. Management is very pleased to update that as an additional source of funding for Project construction, a second Heads of Agreement with a construction company that includes an investment package valued at ~US$60 million has been signed. For clarity, only one of the current two construction companies will be selected to build the Project, and by having this company make a material investment towards Project construction, their interests become fully aligned with existing investors to complete construction on time and budget. Black Iron expects to conclude a binding construction / investment agreement after the offtake investment has been secured. The land Black Iron requires to locate its processing plant, tailings and waste rock stockpiles is owned by Ukraine's Central Government and is being used by the Ministry of Defense for training purposes. As part of ongoing negotiations for this land transfer, a request for proposal ("RFP") is being issued to engineering firms with expertise in the design of training bases for weapons firing and storage so the current training base's functionality can be maintained. Completion of this engineering design work is a critical step in the negotiation of a compensation package for the land transfer to occur, which also entails the construction of several apartment buildings for service men and women. An allocation for these costs has been included within the Company's Preliminary Economic Assessment's estimated US$452 million total construction cost estimate for the entire Shymanivske Project. Further updates on the results of these processes will be announced as continued progress is made.