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Baffinland Announces Flow-through Private Placement to Fund Iron Ore Exploration |
08/30/2006 |
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Download this Press Release
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August 30, 2006 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX: BIM) (the “Company”) announced today that it has agreed to issue, by way of a non-brokered private placement with two purchasers, 2,000,000 common shares priced at $2.50 per flow-through share for gross proceeds of $5,000,000.
Closing of the private placement, which is currently expected to occur on or about September 8, 2006, is subject to certain customary conditions, including, but not limited to, the receipt by the Company of all necessary approvals and consents, including the approval of the Toronto Stock Exchange.
The proceeds of the private placement 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.
This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Particularly, information about the expected closing of the private placement and the potential for a direct-shipping iron ore operation is forward-looking information.
Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices and the feasibility of constructing and operating a direct-shipping iron ore mine at the Company’s Mary River project. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks relating to the closing of the private placement, exploration and development risks, risks relating to the worldwide price of, demand for and supply of iron ore and risks relating to the construction and operation of a mine at the Company’s Mary River project.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time.
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.
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