Black Iron Inc. through its wholly owned subsidiary Shymanivske Steel LLC, has executed a Protocol of Intent Agreement (“PIA”) with SE Prydniprovska Zaliznytsia (“SE”), the government agency accountable for Ukraine’s railways, guaranteeing access to their rail transportation network to transport up to 20 million metric tonnes of iron ore annually from Shimanivska Station near Black Iron’s Shymanivske Project toChernomorska Station at Port Yuzhny, Ukraine. Although Black Iron only requires approximately half of the initial 20 million tonne capacity on the rail based on initial production plans, securing this increased capacity provides flexibility to allow for potential future expansion. The rail PIA takes effect immediately and remains in place until a definitive commercial contract is signed, which is expected to occur closer to the commencement of production in mid-2015.
“We are extremely pleased to have executed this rail protocol agreement, representing another significant milestone in the continued development of our Shymanivske Iron Ore Project,” stated Matt Simpson, President and CEO of Black Iron. “This PIA confirms Black Iron’s access to the rail network, which when combined with our previously announced PIA’s for port facility access and power supply means all three critical pieces of infrastructure required to successfully operate an iron ore mine have been secured.”