Black Iron's Largest Shareholder RAB Capital Increases Ownership

Rhea-AI Summary

Black Iron Inc. (OTC PINK: BKIRF) announced that its largest shareholder, RAB Capital, acquired 2,500,000 shares at an average price of $0.1243, elevating its ownership to approximately 15%. RAB Capital's majority shareholder, Philip Richards, highlighted four reasons for the purchase: the future demand for high-grade iron ore for Green Steel, support for Black Iron's management, belief in Ukraine's independence, and optimism about Ukraine's EU membership post-conflict. All operations in Ukraine are currently halted due to the ongoing war, with a feasibility study in progress.

Positive

• RAB Capital increased its ownership stake to approximately 15%, signaling confidence in Black Iron's long-term potential.
• High-grade iron ore production is positioned as essential for the future of the steel industry, particularly for Green Steel.
• The feasibility study is well advanced, which is critical for future investment opportunities.

Negative

• All operations in Ukraine are currently halted due to the ongoing war, impacting project timelines.
• The geopolitical situation introduces significant uncertainty regarding future operations and investments.

TORONTO, ON / ACCESSWIRE / March 2, 2022 / Black Iron Inc. (" Black Iron " or the " Company ") (TSX:BKI); (OTC PINK:BKIRF); (FWB:BIN) is pleased to report that the Company's largest shareholder, RAB Capital, recently purchased 2,500,000 shares of the Company (" BKI Shares ") in the market at an average price of $0.1243 per BKI Share to increase its ownership position to approximately 15%.

RAB Capital is a private investment holding company of which Mr Philip Richards is majority shareholder. He commented, "We increased our ownership of Black Iron for four good reasons: 1) the high purity and high-grade iron ore that Black Iron plans to produce is essential to make Green Steel which in our view is the future of the steel industry. 2) We support the strong management and the whole team in Ukraine. 3) We believe that Ukraine will remain independent as the clouds of war clear. 4) There is a new impetus to Ukraine joining the European Union on a fast track which is a direct result of massive public support for Ukraine in this war, and displayed openly yesterday in the European Parliament. Our project will benefit greatly in my view from European Union financing initiatives in the near future once this war is over."

As of writing, all of Black Iron's team members are safe and being supported through access to advanced salaries to help cover essential living costs. Black Iron is also working with the local city to provide humanitarian support. All work in Ukraine is currently halted as people remain with their families during this trying time. Black Iron will be completing its feasibility study as this work is very well advanced and an essential input for investors to conduct due diligence once the situation stabilizes.

Should readers wish to support a humanitarian appeal dedicated to Ukraine, the appeal established by the Ukrainian Canadian Congress (UCC) and the Canada-Ukraine Foundation (CUF) is recommended. Donations of support can be made at the following website: www.cufoundation.ca.

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine. Full mineral resource details and projected project economics can be found in the NI 43-101 technical report entitled "(Amended) Preliminary Economic Assessment of the Re-scoped Shymanivske Iron Ore Deposit" published in March 2020 with an effective date of November 21, 2017 under the Company's profile on SEDAR at www.sedar.com. The Project is surrounded by five other operating mines, including Metinvest's YuGOK and ArcelorMittal's iron ore complex. Please visit the Company's website at www.blackiron.com for more information.

For more information, please contact:

Matt Simpson
Chief Executive Officer
Black Iron Inc.
info@blackiron.com

Forward-Looking Information

This press release contains forward-looking information. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time. Forward-looking information may include, but is not limited to, statements with respect to the updates regarding the acquisition of BKI Shares by RAB Capital, the updated feasibility study and the timing of delivery thereof, discussions with the Ukraine government on land transfer, construction and development of the Project and the Company's future plans. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; outbreak of war in Ukraine, progress of the Company's service providers; negotiations with third parties and the Ukrainian government; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. The Company notes that mineral resources are not mineral reserves and do not have demonstrated economic viability.

SOURCE: Black Iron Inc.

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FAQ

What recent action did RAB Capital take regarding Black Iron (BKIRF)?

RAB Capital purchased 2,500,000 shares of Black Iron at an average price of $0.1243, increasing its ownership to approximately 15%.

What reasons did RAB Capital give for increasing their stake in Black Iron?

RAB Capital cited the importance of high-grade iron ore for Green Steel, support for management, belief in Ukraine's independence, and optimism about Ukraine's EU membership.

What is the status of Black Iron's operations in Ukraine?

All work in Ukraine is currently halted due to the ongoing war, though a feasibility study is still in progress.

What future prospects does Black Iron see post-conflict?

Black Iron anticipates benefiting from EU financing initiatives once the war is over and the situation stabilizes.

How has the ongoing conflict in Ukraine affected Black Iron's business?

The ongoing war has halted operations in Ukraine, introducing significant uncertainty about project timelines and future investments.