Black Iron Inc (TSE:BKI) (OTCMKTS:BKIRF) announced Friday it has closed the first of two planned rounds of its C$1.5 million financing aimed at advancing its Shymanivske project located in Kryvyi Rih, Ukraine.
In its first tranche, the iron ore exploration and development company issued 17.5 million at a price of C$0.06 per unit for gross proceeds of C$1,050,506.
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.
"A new strategic investor also participated in this Offering that brings value well beyond the cash invested at this time," said the company in a statement adding the investor has expressed an interest to potentially participate in construction financing, and could also assist in negotiations with other strategic parties that could make an investment to construct Black Iron's Shymanivske project.
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.
The closure of the first tranche is subject to receipt of regulatory approval, including final Toronto Stock Exchange approval. The second tranche of the offering is expected to close on or before April 5, 2019.
Shares of Black Iron were at C$0.06 on the TSX on Friday.
Contact Katie Lewis at [email protected]