Cargill to invest USD 75m in Canadian iron mining project in Kryvyi Rih

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Black Iron announced that it has selected Cargill for offtake rights on the initial four million tons per year of production from its Shymanivske iron ore project and a USD 75m finance facility to be used for project construction.

Subject to completion of due diligence and successful conclusion of negotiations, Cargill will offtake the production and extend financing of USD 75m for the construction of the project through a finance facility, Black Iron said in a press release. Drawdown on this funding will be subject to certain conditions being met, as is customary for this type of transaction, mainly related to the project being fully permitted and financed for construction, it added.

Based on the proposal agreed between Black Iron and Cargill, the offtake agreement will be for an initial term of ten years and will include a profit-sharing component which will align the interests of both parties and thereby generate a strong interdependent relationship of benefit to both parties, according to the release.

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