Canadian company Black Iron, which is implementing the investment project to create a new iron ore production facility in Kryvy Rih (Dnipropetrovsk region), has announced its decision to accelerate the expiry date of the common share purchase warrants dated March 29, 2019 and April 5, 2019.
The company said in its press release on July 30 that the warrants were issued in connection with a private placement of units, with each share purchase warrant being exercisable into one additional common share of the company at a price of $0.09 per share until March 29, 2022 and April 5, 2022, as applicable.
“The Warrants are subject to the right of the Company to accelerate the expiry date of the Warrants if the Company’s common shares close at or above $0.15 per share for more than 10 consecutive trading days on the Toronto Stock Exchange (the “Acceleration Event”). The Company is entitled to accelerate the expiry of the Warrants to that date that is 30 business days from the date of issuance of a news release announcing the exercise of the acceleration right,” it said.
Black Iron also noted that the press release constitutes notice to the holders of warrants that the Acceleration Event has occurred and the company has elected to accelerate the expiry date of the Warrants. This notice only affects the warrants dated March 29, 2019 and April 5, 2019 and not any other warrants the company has issued.
In addition, it is reported that Black Iron’s management have recently initiated discussions with institutional investors on a royalty that could contribute materially to the funding required for project construction and are receiving strong interest.
“Negotiation of a Heads of Agreement on the commercial terms to be included in a binding contract for a high potential $60 million investment in exchange for being awarded the construction contract for the Shymanivske project have concluded positively with one company and are well advanced with a second. Further details on this will be disclosed in due course noting that a binding contract would only be entered into with only one of these two companies, should the parties reach an agreement, who will then lead the future planned construction of the project,” the company said.