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Black Iron Closes Bought Deal Private Placement

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Black Iron Closes Bought Deal Private Placement






Black Iron Inc. (TSX:BKI) (FRANKFURT:BIN) has closed its previously announced bought deal private placement with Dundee Securities Ltd., as sole underwriter.


Closing of Fully Subscribed Bought Deal Private Placement

Pursuant to the Private Placement, 17,680,000 units of the Company were issued at a price of $0.17 per Unit for aggregate gross proceeds to the Company of $3,005,600. Each Unit consists of one common share of the Company and one common share purchase warrant. Each Warrant will entitle the holder to purchase one common share of the Company at a price of $0.25 until February 20, 2017. If all the Warrants are exercised, it will result in additional proceeds to Black Iron of $4,420,000. The Warrants will not be listed for trading on the Toronto Stock Exchange. All securities issued pursuant to the Private Placement will be subject to a four month hold period which will expire on June 21, 2014.

“We are extremely pleased with the overwhelming support for this financing, as evidenced by the subscriber take-up and the follow-on interest received in the two weeks following announcement. We plan to use the proceeds from this private placement, along with the funds to be received upon closing of our strategic arrangement with Metinvest B.V, to fund our development needs throughout the balance of this year. With this financing behind us, our focus moves to closing the Metinvest transaction, which is expected in the coming weeks, then to the first stage of EPCM work for the Project, and to finalizing an off-take agreement,” said Matt Simpson, President and CEO of Black Iron.

Corporate Activities and Development in Ukraine Continue Uninterrupted

The Company continues to monitor the situation in Kyiv and advises that business continues as usual at Black Iron’s office and Project sites in Kryviy Rih, Ukraine, despite the escalating demonstrations and violence in Kyiv.

“We are saddened by the ongoing and unfortunate situation in Kyiv and are hopeful that a quick and peaceful resolution can be found for everyone involved,” said Matt Simpson. “Notwithstanding these circumstances all corporate development and related activities for Black Iron continue uninterrupted, both in and outside of Ukraine. Everyone continues to go to work, and prospective off-take partners and equipment vendors continue to investigate the potential of working with us, including routine site visits and team meetings in Ukraine.”

“The sooner a peaceful resolution can be achieved, the sooner the country can reassert itself as a prime destination for foreign investment. Ukraine has tremendous opportunities ahead of it with significant mineral and agricultural wealth, a unique geographical location, fully built infrastructure systems for road, rail, power, and port, and a highly skilled, hard working population.”

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100 percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant resource, with 645.8 Mt Measured 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. 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.

Posted February 20, 2014

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