Black Iron Inc (TSE:BKI) (OTCMKTS:BKIRF) plans to raise $1.5 million to help its iron project in Ukraine towards major upcoming milestones, it announced on Friday.
The Toronto-based junior plans to use the proceeds to advance the Shymanivske project by securing essential land surface rights, as well as further discussions and negotiations on construction financing and general working capital purposes.
The non-brokered private placement will include up to 25 million units at $0.06 per share for a maximum gross proceeds of $1.5 million.
Each share will consist of one common share of the company, along with one-half share purchase warrant that entitles the holder to acquire a common share at $0.09 for three years from the date of issue.
Closing of the offering is expected to take place by March 29, 2019, subject to TSX approval.
Shares of Black Iron were trading at C$0.06 on the TSX on Friday morning and US$0.05 in the US.