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Baffinland Announces Closing Of $5.5 Million Private Placement To Fund Iron Ore Exploration |
06/22/2004 |
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TORONTO, ONTARIO – Baffinland Iron Mines Corporation (TSXV:BIM) (“Baffinland” or the “Company”) announced today that it has closed its previously announced private placement of 4,400,000 flow-through special warrants priced at $1.25 per flow-through special warrant for total gross proceeds of $5.5 million. All of the flow-through special warrants issued in connection with this private placement are subject to a four-month hold period under applicable securities laws.
A total of 3,760,000 flow-through special warrants were placed on a best-efforts basis by a syndicate led by Haywood Securities Inc., and including Orion Securities Inc. and Dundee Securities Corporation. The balance of the special warrants was placed directly by the Company on a non-brokered basis. For their services in connection with the private placement, the Agents received an aggregate commission equal to 5.5% of the proceeds raised under the brokered offering, as well as broker warrants entitling them to purchase, at a price of $1.25 per common share, a total of 100,000 common shares of the Company.
The proceeds from the flow-through private placement will be used to fund Baffinland’s exploration activities at its wholly-owned Mary River iron ore deposits located approximately 160 kilometres south of Pond Inlet on Baffin Island, Nunavut. The mobilization of supplies and personnel to the Mary River site for the 2004 diamond drill program is virtually complete and drilling is now expected to commence by the end of the week of June 21st. Drilling will initially test the exposed northern strike extension of Deposit No. 1 and will subsequently test the down dip and southern extensions of previous drilling. Drilling is also planned on Deposits No. 2, No. 3 and No. 3A where no previous drilling has been done. The 2004 drill program is expected to be approximately 5,000 metres of large diameter core completed by two diamond drills over the three month period to mid-September 2004.
Forward Looking Statements
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including risks relating to the exploration and development of the Company’s iron ore deposits. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Not for distribution to U.S. news wire services or dissemination in the United States.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
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