RE:RE:RE:news...MD&A came out 12 days ago with an update 6pak. You should dig deeper:
Black Iron’s management are well advanced in the negotiation of terms for a potential royalty investment valued at multiple times the Company’s current market capitalization. The main benefit of including a royalty investment as part of the capital structure is it is less dilutive for existing shareholders given the investment amount relative to today’s market capitalization. Should this royalty investment be secured on attractive terms, it has the potential to displace the offtake investment as the main source of equity required for Project construction.
For clarity, Company management will still seek to secure an offtake investment to round out the equity required for Project construction and product purchase agreements often required by debt investors. It is possible, this royalty could be finalized prior to the end of this year.
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 PEA’s estimated US$452 million total construction cost estimate for the entire Shymanivske Project.