Black Iron Inc (TSE:BKI) (OTCPINK:KIRF) has said that the president of Ukraine has reinforced his support for the firm's large Shymanivske iron ore project in Ukraine.
The project is situated in Kryviy Rih and contains an NI 43-101 resource of 646 million tonnes (Mt) in the measured and indicated category and 355 Mt of measured at a grade of 32% total iron and 19.5% magnetic iron.
READ: Black Iron raising C$1.8 million to advance Shymanivske iron ore project through to construction
A preliminary economic assessment (PEA) estimated an after-tax unlevered internal rate of return (IRR) of 34% and net present value of US$1.4 billion using a 10% discount rate.
"This is more than a billion dollars of investment in Ukraine, it is very important for Canada, for Black Iron, and it is important for us," Black Iron quoted the president as saying in an article, which was published on his official website on June 21 this year.
"I know this very well, because I am from Kryvyi Rih and this is the investment in my hometown. This problem has been "hanging" for 10 years, but it is such a big investor. The size of the investment is 1.1 billion US dollars. They could not enter Ukraine," the Head of State was also quoted as saying.
Black Iron also noted that Zelenskyy's reference to an issue being "almost resolved" most likely related to the currently "ongoing positive discussions between Black Iron, Ukraine's Ministry of Defense and other Ukraine government agencies on the transfer of state-owned land essential for construction of Black Iron's Shymanivske iron ore project."
"President Zelenskyy's strong and consistent support of Black Iron's project is important as it provides the company and its investors with confidence that the Shymanivske project will obtain the necessary land and permits required for construction in a timely manner," said Matt Simpson, the CEO of Black Iron.
"The Deputy Head of the President's Office, Mr Ihor Zhovkva, has taken on the responsibility to be Black Iron's "Investment Nanny", a formal role created by Ukraine's government to support foreign investors, to personally ensure all items requiring Ukraine government support to implement Black Iron's project are addressed by the various impacted government departments as a priority."
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