18 Jul 2023 16:15

Black Iron submits proposed investment support agreement on Shimanovsky project with Ukraine

MOSCOW. July 18 (Interfax) - Black Iron Inc., a Canadian mining company that holds the license to the Shimanovsky iron ore deposit, has submitted a proposed legally binding special investment support agreement to Ukraine's Economy Ministry for consultation, Ukrainian media reported, quoting a company press release.

"It is unclear as to how long Ukraine's Ministry of Economy will take to complete its review of Black Iron's Investment Agreement submission, given this will be one of the first applications. Subsequent to the Ministry of Economy's review and support, the Investment Agreement will then be provided to Ukraine's Cabinet of Ministers for approval and execution," the company said.

The Investment Agreement includes transfer of lands required for location of the Shimanovsky iron ore project's processing plant, tailings and waste stockpiles, upon the end of martial law.

The Investment Agreement provides for meaningful exemptions from import duties on mine and processing plant equipment purchased. Having an Investment Agreement is also a prerequisite for the company to apply for political risk insurance from the World Bank's Multilateral Investment Guarantee Agency, which may be a condition required by banks and larger investors for future Project construction financing.

The proposed Investment Agreement was a major undertaking that involved creation of a feasibility study and obtaining updated letters of interest from investors proposing to fund future Project construction.

Black Iron Inc. said in February 2023 that continued to promote the project in Ukraine, despite the difficulties with its implementation. The main issue was obtaining the use of a land plot which is under the Defense Ministry's jurisdiction.