Black Iron Secures US$4 Million Royalty Agreement with Anglo American

Black Iron Inc., a Toronto-based company, has signed a binding agreement with Anglo American for a US$4 million royalty investment. This agreement also grants Anglo American offtake rights to at least 2.4 million tonnes per year for the life of the Shymanivske Iron Ore Project. The funding will bolster Black Iron's financial standing amid challenges in Ukraine.

Under this agreement, Anglo American will invest in two tranches, securing a gross revenue royalty. The partnership allows Anglo American a right of first offer for further investment in the project's construction phases, potentially increasing its offtake to 100% for each phase. This could address the growing demand for high-purity iron ore, essential for green steel production.

Black Iron's CEO highlighted the importance of this partnership with Anglo American, noting its potential to lead project funding post-Ukraine conflict. The deal underscores significant global interest in the project due to its promising economic forecasts and high-quality iron ore output.