Canada’s Black Iron, owner of Ukrainian iron ore assets, plans IPO

Canada’s Black Iron, which controls iron ore assets in Kryviy Rih in Eastern Ukraine, is planning an IPO on a Canadian stock exchange in 2011, according to an announcement made earlier this week. Black Iron filed a preliminary prospectus with securities regulatory authorities in Canada in connection with the offering. Black Iron was established in 2007 and owns a 100% interest in a mining permit for the Shymanivske Project, which covers a 2.56 km2 area in Kryviy Rih and contains approximately 345 mln mt of measured and indicated resources grading 31.83% iron and approximately 469 mln mt of inferred resources grading 31.05% iron. Black Iron acquired the iron ore assets from Geo-Alliance Group, part of Ukrainian businessman Viktor Pinchuk’s East One holding, in 2010 and renamed itself from Geo-Alliance Ore East to Black Iron. Andriy Gerus: We believe there is now strong momentum for the sector and the company will make a successful placement. Iron ore prices are at a 3.5-year high (more than +150% over the last 12 months) and we do not expect a significant decrease in the next 1-2 years.