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Black Iron Inc. Closes Initial Public Offering and Commences Trading on the Toronto Stock Exchange

03/29/2011

Download this Press Release (PDF 24 KB)

TORONTO, ONTARIO--(Marketwire - March 29, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) is pleased to announce that it has closed its initial public offering (the "Offering") of 25,000,000 common shares (the "Common Shares") of the Company at a price of C$1.40 per Common Share for aggregate gross proceeds of C$35,000,000. The Company has granted to the underwriters an over-allotment option to purchase up to an additional 3,750,000 Common Shares, exercisable for a period of 30 days from the date hereof. If such option is exercised in full, aggregate gross proceeds of the Offering will be C$40,250,000.

The Common Shares are listed on the Toronto Stock Exchange under the symbol "BKI" and will start trading today.

Matt Simpson, President and Chief Executive Officer of Black Iron commented, "The closing of the Offering and the commencement of trading on the Toronto Stock Exchange mark two important achievements for the Company. With the proceeds from the Offering, we can now aggressively ramp up our exploration and development activities and begin to focus on delivering the next key milestones, which will include a robust drill campaign."

The syndicate for the Offering was led by GMP Securities L.P. and included Canaccord Genuity Corp., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Dundee Securities Ltd. and Macquarie Capital Markets Canada Ltd.

The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States or to U.S. Persons absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Common Shares, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About the Company

Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Krivoy Rog, Ukraine to production. This project contains a NI 43-101 compliant resource with 345Mt measured and indicated resources grading 32% iron and 469Mt of inferred resources grading 31% iron. The project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure including access to power, rail and port facilities will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project which it intends to further explore to determine its potential.

Please visit the Company's website at www.blackiron.com or write us at info@blackiron.com.

The technical contents of this press release have been prepared under the supervision of Matt Simpson, President & Chief Executive Officer of the Company, who is a Qualified Person as defined by NI 43-101. For further information, please see the technical report of the Company, which is available on SEDAR at www.sedar.com.

Forward Looking Information

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the completion of the Offering and the Company's planned exploration. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking information are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this press release, including, without limitation those described in the final prospectus under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking information, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking information prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking information contained in this press release. The forward-looking information contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.

FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Cubed
Investor Relations
+1 (647) 258-3311 or Toll Free: 1 888 258 3323

Black Iron Inc. Matt Simpson President & Chief Executive Officer +1 (416) 309-2138 Source: Black Iron Inc.