Black Iron Inc. announced that Metinvest B.V. has entered into definitive agreements with Black Iron. Under the agreement, Metinvest also agreed to commit investments in Black Iron-Cyprus. Black Iron-Cyprus is a wholly-owned subsidiary of Black Iron Inc. Black Iron Inc. is a Canadian iron ore exploration company while Metinvest is one of Ukraine's biggest mining and steel producers.
The agreements generated a defined avenue for Metinvest to end up as a prominent shareholder of Black Iron's venture projects. The projects include the Zelenivske Project and the Shymanivske Project located in Kryvyi Rih, Ukraine.
Provisions of the accord between Metinvest and Black Iron require Metinvest to make an investment of US$20 million in Black Iron-Cyprus. The funds are to be used in funding the Ukrainian projects. Metinvest's possible investment amounts thereafter are expected to expand to around US$530 million especially during construction of the Ukrainian projects.
"Black Iron selected Metinvest for its industry-leading experience in iron ore mining and steel making, as well as its operational history in Ukraine. This agreement greatly strengthens our development team and I look forward to being closely associated with Metinvest. Together, we will help bring new world class iron ore processing, safety and environmental technologies to Ukraine," Black Iron CEO and President, Matt Simpson, explained.
Join the Conversation