Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

October 19, 2007 09:00 ET

Baffinland Announces Mitsubishi's Participation Right Expires

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2007) -

Attention Business Editors:

Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) announced today the expiration of Mitsubishi Corporation's ("Mitsubishi") participation right under its agreement with Mitsubishi dated December 22, 2005 (the "Agreement").

Under the terms of the Agreement, in order to have maintained its participation right, Mitsubishi was required to participate in the Company's most recent securities offering of flow-through and non-flow through shares, such that after giving effect to its participation, Mitsubishi would have held 5% or more of the outstanding shares.

"With the completion of Baffinland's definitive feasibility study (the "DFS") anticipated in December 2007, and Mitsubishi's interest in further investment upon receipt of the DFS, Mitsubishi elected to not participate in our most recent private placement", said Gordon A. McCreary, President and Chief Executive Officer of Baffinland. "Mitsubishi's investment perspective is of a long-term nature and we are looking forward to discussing its long-term investment objectives following the release of our DFS."

"Despite losing the Participation Right, Mitsubishi's supportive position as Baffinland's strategic investor will not change and we will remain strongly interested in our further involvement in Baffinland in the future. We will be looking forward to discussing the next opportunity of equity financing upon receiving the definitive feasibility study in the near future", said Mr. Iwao Toide, General Manager, Iron Ore Business Unit of Mitsubishi.

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. Forward-looking information is based on certain factors and assumptions regarding, among other things, the completion of a definitive feasibility study including the timing of completion and related statements thereto, obtaining additional investment from current strategic investors including the timing of receipt and related statements thereto, 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 financing risk, 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.

Contact Information

  • Baffinland Iron Mines Corporation Gordon A. McCreary President and Chief Executive Officer (416) 814-3163 Email: info@baffinland.com Website: www.baffinland.com
    or
    The Equicom Group Andreas Curkovic (416) 815-0700 ext. 262