Ukrainian mining and steel producing group Metinvest has announced that it has entered into definitive agreements on cooperation with Canadian iron ore exploration company Black Iron and to invest in BKI Cyprus, which is a wholly-owned subsidiary of Black Iron. The agreements create a defined path for Metinvest to become a prominent shareholder in Black Iron development projects, namely, the Shymanivske project and the Zelenivske project, both located in Kryvyi Rih, Ukraine.
The provisions of the agreements between Black Iron and Metinvest require Metinvest to make an initial investment of $20 million in BKI Cyprus to help fund the projects, with potential investment amounts thereafter expected to increase during construction of the projects to approximately $536 million.
Completion of this transaction is subject to receipt of all necessary regulatory approvals, including approval from the Ukrainan government's anti-monopoly division.
Metinvest has a proven track record of developing and operating iron ore projects in Ukraine, which is expected to prove invaluable to Black Iron in the advancement of its projects.