Black Iron Inc. said Sept. 4 that it received a formal proposal from the Ukrainian government to lease a plot of land connected to its Shymanivske iron ore property for a processing plant, tailings and waste rock.
The Kryvyi Rih city council in Ukraine previously granted Black Iron approval to move ahead with development plans for the property. The proposal marks a significant milestone in the property's development.
Ukraine's central government owns the plot and uses it for military training. To secure rights to the land, Black Iron needs to agree on a compensation package with the country's Ministry of Defence and the central government.
In addition, Black Iron said several steel mills and trading houses have expressed interest in acquiring the ultra high-grade pellet feed product expected to be produced from the project.
Talks are ongoing with select parties to strike an off-take agreement, in which they will secure the rights to purchase the product in exchange for an investment to help fund the project's construction.