Toronto-listed Black Iron has received strong interest from “well-known multibillion-dollar companies” interested in securing rights to buy the planned four-million tons a year that its iron-ore project in Ukraine will produce.
The company intends to offer the production at a “slight discount” to the market price, in exchange for making a significant investment towards the construction of the Shymanivske project.
About $452-million is required to construct Phase 1 of the iron-ore project, which will produce “ultra-high grade” 68% iron-ore.
“The bids received are in line with my expectations from the process and are reflective of the project’s strong economic return potential plus market shift to prefer high iron content ores that substantially reduce emissions in producing steel,” CEO Matt Simpson said on Thursday.
Black Iron would select a winning bidder in the coming weeks.