The Toronto-based junior miner said in a statement that it has struck an agreement with Ukraine's government to acquire a key parcel of land being used by the country's Ministry of Defense for the location of Black Iron's future processing plant, tailings and waste rock stockpiles.
Black Iron said a memorandum of understanding was signed Thursday between the company and the Ministry of Defense, with support from the country’s Prime Minister and Ministry of Economy offices.
Pursuant to the MOU, the Ministry of Defense has agreed to transfer a 1,263-hectare parcel of land adjacent to Black Iron's Shymanivske ore body in exchange for a commitment from the company to provide compensation that will largely be used to fund the construction of needed apartments for servicemen and women.
The ultimate amount of compensation to be paid by Black Iron is currently being negotiated and will be finalized as part of entering into a binding agreement with the Ministry of Defense for the land transfer.
Black Iron's Preliminary Economic Assessment incorporates a reasonable amount of money, based on benchmarks of land value and precedent transactions, for the compensation to be paid to the Ministry of Defense within the US$436 million estimated costs to construct its first phase 4 million tonnes per annum of production.
"This is a huge win-win for Black Iron's shareholders and Ukraine's Government,” said CEO Matt Simpson. “Management of Black Iron has been working extensively to secure this essential land for project construction along with immediate access to conduct an environmental impact assessment. Once the binding agreement is in place, Ukraine's Government will receive the funds necessary to construct much-needed apartments for its servicemen and women.”
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