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Baffinland Announces Closing Of Second Tranche Of Private Placement |
05/11/2005 |
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TORONTO, ONTARIO – Baffinland Iron Mines Corporation (TSX-V:BIM) (the “Company”) announced today that it has closed the second tranche of its previously announced private placement, issuing 646,900 flow-through common shares priced at $1.55 per flow-through common share and 10,000 common shares priced at $1.40 per common share for aggregate gross proceeds of $1,016,695. The Company has now raised aggregate gross proceeds of $11,773,831 pursuant to this tranche and the issuance of flow-through common shares and common shares in the first tranche of the private placement, which closed May 5, 2005. The Company is leaving the offering open until May 31, 2005.
All of the flow-through common shares and common shares issued in connection with this second tranche of the private placement are subject to a four-month hold period under applicable securities laws expiring September 12, 2005.
All of the flow-through 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 second tranche of the private placement, the Agents received an aggregate commission equal to 5.5% of the proceeds raised under the tranche.
The proceeds of the private placement will be used to fund exploration at the Company’s 100%-owned Mary River project and, in respect of the proceeds from the issuance of common shares, for general corporate purposes.
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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