Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

November 14, 2007 17:54 ET

Baffinland Announces Closing of $33 Million Non-Brokered Flow-Through Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") announced today that it has closed the first tranche of its previously announced non-brokered private placement. The Company issued an aggregate of 6,271,239 flow-through common shares at $5.30 per flow-through share, for gross proceeds of $33,237,566.70. The Company expects to close a second and final tranche of the private placement for an approximately 654,468 additional flow-through shares on or about November 16, 2007.

In connection with the non-brokered private placement, Baffinland paid a finder's fee of 2.5% to retail brokerage firms in respect of certain new (non-institutional) accredited or exempt investors referred by such brokerage firms.

The Company also announced today that the amount available under its credit facility with the Bank of Nova Scotia has been reduced from $14 million to $9.6 million. A total of $9.6 million remains outstanding under this credit facility.

The proceeds of the private placement will be used to fund Canadian Exploration Expense, as defined by the Canadian Revenue Agency, at the Company's 100% owned Mary River project.

Baffinland is a Canadian publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada. Baffinland's shares trade on the Toronto Stock Exchange under the trading symbol BIM.

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 fact. Forward-looking information is based on certain factors and assumptions regarding, among other things, market conditions, 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 market risks, 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.

Contact Information

  • Baffinland Iron Mines Corporation
    Gordon A. McCreary
    President and Chief Executive Officer
    (416) 814-3163
    or
    Baffinland Iron Mines Corporation
    Sonya Stark
    Vice President and Corporate Secretary
    (416) 814-3172
    Email: info@baffinland.com
    Website: www.baffinland.com