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Baffinland Announces Closing Of First Tranche Of Private Placement |
05/05/2005 |
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TORONTO, ONTARIO – Baffinland Iron Mines Corporation (TSX-V:BIM) (the “Company”) announced today that it has closed the first tranche of its previously announced brokered private placement, issuing 6,233,636 flow-through common shares priced at $1.55 per flow-through common share and 782,143 common shares priced at $1.40 per common share for total gross proceeds of $10,757,136. All of the flow-through common shares and the common shares issued in connection with this first tranche of the private placement are subject to a four-month hold period under applicable securities laws expiring September 6, 2005.
All of the flow-through common shares and common shares were placed on a best-efforts basis by a syndicate led by First Associates Investments Inc., and including Raymond James Limited, Dundee Securities Corporation, Haywood Securities Inc. and Wellington West Capital Markets Inc. (collectively, the “Agents”). For their services in connection with the first tranche of the private placement, the Agents received an aggregate commission equal to 5.5% of the proceeds raised under the first tranche.
The proceeds of the private placement will be used to fund exploration at the Company’s 100%-owned Mary River project and for general corporate purposes.
A second and final tranche of the private placement is expected to close on or about May 11, 2005, subject to certain customary conditions, including, but not limited to, the execution of definitive subscription agreements with the subscribers as well as receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange.
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.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
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