/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO,
June 29, 2021 /CNW/ -
Black Iron Inc. ("Black Iron" or the "Company") (TSX: BKI; OTC:
BKIRF; FRANKFURT: BIN) announces that it has filed a preliminary
short form prospectus (the "Prospectus") with the securities
commissions in each of the Provinces of Canada (other than Quebec) (the "Canadian Jurisdictions"), in
connection with a marketed public offering (the "Offering") of
common shares of the Company (the "Shares") for aggregate gross
proceeds of approximately C$10
million. The price of the Offering will be determined in the
context of the market.
The Offering is being conducted on a "best efforts" agency basis
and will be conducted by Canaccord Genuity Corp. (the "Agent") as
lead agent and sole bookrunner and is subject to customary closing
conditions, including, but not limited to, the entering into of an
agency agreement with the Agent, the approval of the securities
regulatory authorities and the Toronto Stock Exchange.
The Offering will be completed (i) by way of a short form
prospectus filed in the Canadian Jurisdictions, (ii) on a private
placement basis in the United
States pursuant to exemptions from the registration
requirements of the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), and (iii) outside Canada and the
United States on a basis which does not require the
qualification or registration of any of the Company's securities
under domestic or foreign securities laws.
The Company has granted the Agent an option to purchase up to an
additional 15% of the Shares sold under the Offering, at the issue
price of the Shares, which may be exercised, at the sole discretion
of the Agent, in whole or in part to purchase Shares upon written
notice to the Company at any time up to 30 days following the
closing date of the Offering.
The Company intends to use the net proceeds of the Offering for
(a) the completion of a Feasibility Study for the Company's
Shymanivske Iron Ore Project, (b) the completion of an
Environmental and Social Impact Assessment, (c) paying for a
portion of the relocation and construction of a new Ukrainian
military firing range and ammunition depot to secure access to land
required for the Project (as defined below), and (d), working
capital and general corporate purposes, all as described in more
detail in the Prospectus.
The Prospectus is available on SEDAR at www.sedar.com.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities have not been and will
not be registered under the U.S. Securities Act or any applicable
state securities laws, and may not be offered or sold to, or for
the account or benefit of, persons in the
United States or to U.S. persons unless registered under the
U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available. "United
States" and "U.S. persons" shall have the meanings assigned to them
in Regulation S under the U.S. Securities Act.
About Black Iron
Black Iron is an iron ore exploration and development company,
advancing its 100% owned Shymanivske project located in Kryviy Rih,
Ukraine. Full mineral resource
details can be found in the NI 43-101 technical report entitled
"Preliminary Economic Assessment of the Re-scoped Shymanivske Iron
Ore Deposit" published in March 2020
with an effective date of November 21,
2017 (the "PEA") under the Company's profile on SEDAR at
www.sedar.com. The Shymanivske project is surrounded by five other
operating mines, including ArcelorMittal's iron ore complex.
The PEA is preliminary in nature, and it includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves. There is no certainty that
the PEA will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic
viability. Please visit the Company's website at
www.blackiron.com for more information.
Forward-Looking Information
This press release contains forward-looking information.
Forward-looking information is based on what management believes
to be reasonable assumptions, opinions and estimates of the date
such statements are made based on information available to them at
that time. Forward-looking information may include, but is
not limited to, statements with respect to the size and
pricing of the Offering, the timing of closing of the Offering, the
ability of the Company to obtain all necessary regulatory approvals
to complete the Offering and enter into an agency agreement with
the Agent and the intended use of proceeds and the
Company's future plans. Generally, forward looking information can
be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: the inability of the Company to complete the Offering
on the terms described herein or at all, the Company using any
proceeds from the Offering in a manner other than as set out
herein, general business, economic, competitive, geopolitical and
social uncertainties; the actual results of current exploration
activities; other risks of the mining industry and the risks
described in the annual information form of the Company. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws. The Company
notes that mineral resources are not mineral reserves and do not
have demonstrated economic viability.
The Toronto Stock Exchange has neither approved nor
disapproved the information contained herein.
A preliminary prospectus containing important information
relating to these securities described herein has been filed with
securities commissions or similar authorities in certain
jurisdictions of Canada. The
preliminary prospectus is still subject to completion or amendment.
There will not be any sale or any acceptance of an offer to buy the
securities until a receipt for the final prospectus has been
issued.
SOURCE Black Iron Inc.