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Baffinland Announces Closings of Investment by Mitsubishi and Flow-through Private Placement to Fund Iron Ore Exploration |
12/22/2005 |
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December 22, 2005 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX-V: BIM) (the “Company”) announced today that it has closed its previously announced non-brokered private placement with Mitsubishi Corporation (“Mitsubishi”) issuing 2,750,000 common shares priced at $2.00 per common share, and its previously announced non-brokered private placement, issuing 6,000,000 flow-through subscription receipts priced at $2.00 per flow-through subscription receipt, which were immediately exchanged by subscribers for an aggregate of 6,000,0000 flow-through common shares of the Company. As a result of the concurrent private placements, the Company has raised aggregate gross proceeds of $17,500,000.
“We are very pleased to have Mitsubishi, one of the largest diversified trading and investment companies in the world, as our first strategic investor in Baffinland”, stated Gordon McCreary, President and CEO of Baffinland. “Mitsubishi’s knowledge of iron ore markets and its involvement in the iron ore industry globally and specifically in Canada, through its 26.2% ownership of Iron Ore Company of Canada (IOC) and its 49% ownership of its sales division, IOC Ore Sales Company, make Mitsubishi an ideal, knowledgeable strategic investor in Baffinland.” In addition to the investment being made in the Company by Mitsubishi, the Company and Mitsubishi also executed an agreement granting Mitsubishi certain Asian marketing rights for a portion of future Baffinland iron ore production. He went on to state, “We look forward to developing sales opportunities in Asia and to a long, growing and mutually beneficial relationship with Mitsubishi.”
All of the common shares and the flow-through common shares issued in connection with the concurrent offerings are subject to a four-month hold period under applicable securities laws or under contractual rights, in each case, expiring April 23, 2006.
The proceeds of the concurrent offerings will be used to fund exploration at the Company’s 100% owned Mary River project, a high grade, potential direct-shipping iron ore operation located in Nunavut Territory, Canada, 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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