TORONTO, ONTARIO--(Marketwired - May 19, 2016) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) has entered into an agreement with Carpathian Gold Inc. (CSE:CPN) ("Carpathian") to acquire 57,142,857 units (the "Units"), or 6.3% of the issued and outstanding shares of Carpathian, at a price of CAD$0.07 per Unit, for total consideration of CAD$4 million. Each Unit consist of one common share of Carpathian and one-half of a common share purchase warrant ("Warrant"). Each whole Warrant will allow Black Iron to acquire one common share of Carpathian at a price of CAD$0.12 for a period of two years from the date of issuance. The Warrant exercise period may be accelerated if the common shares of Carpathian trade at a price above CAD$0.15 for a period of 20 consecutive trading days.
As part of the agreement, Matt Simpson, BKI's President and CEO has joined Carpathian's board of directors and will help play an active role in the development of Carpathian's Rovina Valley Gold Project ("Rovina Project"), located in Romania. Additionally, BKI's COO, Les Kwasik, will join Carpathian Gold's management team to actively advance the Rovina Project's development.
Matt Simpson, President and CEO of Black Iron, commented "Due to the ongoing unrest in Ukraine, Black Iron's senior management team has been actively looking for an additional high quality project to deploy its highly skilled team plus financial resources and view Carpathian and its Rovina Project, which is the second largest gold deposit in Europe, as an exceptional opportunity. BKI's COO, Les Kwasik, has extensive experience in gold and copper mining having personally been a part of the build and operation of six gold mines, two of which were copper gold, throughout his 45 year career. In addition to this actively managed investment, Black Iron will continue to seek out another high quality project that it will directly control to create a world class multijurisdictional company".
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100% owned Shymanivske project located in Kryvyi Rih, Ukraine.
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, including those factors discussed in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2015 or as may be identified in the Company's public disclosure from time to time, as filed under the Company's profile on SEDAR at www.sedar.com. Forward-looking information may include, but is not limited to, statements with respect to future plans for the Company's development, possible acquisition targets and strategies, the performance of Carpathian and the development of the Rovina Project. 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; the actual results of current exploration activities; 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 that are not mineral reserves do not have demonstrated economic viability.
Contact Information:
Matt Simpson
President & CEO
+1 (416) 309-2138