Black Iron (TSX:BKI,OTC:BKIRF) has announced the signing of a non-binding Memorandum of Understanding with a subsidiary of Glencore, pursuant to which the parties agree to engage in formal negotiations to finance the construction of the Shymanivske iron ore project in Ukraine.
The company said the MOU contemplates Glencore making an investment to help fund construction of the project in exchange for securing the offtake of up to the full phase one planned annual production of four million tonnes with the terms and amount still to be negotiated. Additionally, the MOU outlines cooperation between Black Iron and Glencore to leverage their relationships to source the balance of funds required to construct the project.
CEO of Black Iron, Matt Simpson said:
“I am excited to welcome Glencore as an offtake investor for construction of the Shymanivske project as well as their agreement to work with us to help secure additional financing. Glencore’s involvement significantly strengthens our capability and draws on their extensive international network, experience and market knowledge.”