A second $5 m instalment has been received by Black Iron Cyprus from Metinvest B.V. as part of the previously announced closing schedule for the strategic investment and development arrangement pertaining to Black Iron (Cyprus) Ltd. (BKI Cyprus).

In conjunction with the closing of the Arrangement, Metinvest has now paid half of the initial US$20 million financial contribution to the Shymanivske Iron Ore Project through the subscription of shares of BKI Cyprus. The remaining balance of US$10 million is scheduled to be received in two further equal instalments on June 16, 2014 and July 15, 2014. Metinvest has also been issued common shares of approximately 24% of the share capital of BKI Cyprus to date.

Yuriy Ryzhenkov, General Director and CEO of Metinvest, commented, "Both Metinvest and Black Iron are committed to the completion of the Arrangement and to the development of the Shymanivske Iron Ore Project. Shymanivske is a construction-ready project that is expected to provide a number of important near term benefits to Ukraine including job creation, new tax revenues, new world-class technologies, equipment, and best international practices for operation and environmental impact."

Metinvest is a vertically integrated steel and mining group of companies, managing every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. The Group comprises steel and mining production facilities located in Ukraine, Europe and the USA and has a sales network covering all key markets. Metinvest is the largest employer in Ukraine and accounts directly for 2.3% of the country's Gross Domestic Product (GDP) growing to 6.3% of Ukraine's GDP on an indirect basis.

Metinvest strives to become the leading integrated steel maker in Europe demonstrating sustainable growth and profitability independently from the phases of economic cycle and providing the return on investment above the average industry levels. Metinvest Group is structured into two operating divisions: Metallurgical Division and Mining Division. Metinvest is made up of over 100,000 employees globally and in 2013 produced 36.9 million tonnes of iron ore, 11.4 million tonnes of coal and 12.4 million tonnes of steel.

The major shareholder of Metinvest Group is Metinvest B.V., a holding company owned by System Capital Management Group (71.25%) and Smart-Holding (23.75%).

Black Iron is an iron ore exploration and development company, advancing its 51% owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant resource, with 645.8 MtMeasured and Indicated mineral resources, consisting of 355.1 Mt Measured mineral resources grading 32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of 290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade of 10% Magnetic iron.

Additionally, the project contains 188.3 Mt of Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. Full mineral Resource details can be found in the National Instrument 43-101 compliant technical report dated December 17, 2012 titled ‘Feasibility Study of the Shymanivske Iron Ore Deposit for Black Iron Inc.’ under the Company's profile on SEDAR at www.sedar.com

The project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project, which it intends to further explore to determine its potential.

Please visit the Company's website at www.blackiron.com

Source: MarketWatch