Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

February 21, 2007 08:30 ET

Baffinland Iron Mines Corporation Announces Additional Investment by Mitsubishi Corporation

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2007) -

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Attention Business Editors:

Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) is pleased to announce that Mitsubishi Corporation ("Mitsubishi") has provided notice to the Company that it intends to exercise its right to participate in the Company's recent public offering of units (the "Units") that closed on January 31, 2007. Mitsubishi has advised that it intends to subscribe on a private placement basis to the full extent of its rights, or an aggregate of 1,054,875 Units at a price of $2.75 per Unit, for total gross proceeds to the Company of approximately $ 2,900,906. Each Unit will consist of one common share (each a "Common Share") of the Company and one-half of one Common Share purchase warrant (each whole Common Share purchase Warrant, a "Warrant"). Each whole Warrant will entitle the holder to acquire one additional Common Share of the Company at a price of $5.50 per Common Share until January 31, 2012, subject to adjustment in certain events.

"We are very pleased that Mitsubishi, one of the largest diversified trading and investment companies in the world, has demonstrated its continued interest and confidence in Baffinland and the Mary River Project through its additional planned investment in the Company", stated Gordon McCreary, President and CEO of Baffinland.

The Company intends to use the net proceeds of the subscription by Mitsubishi to finance exploration and potential development activities at the Company's 100% owned Mary River project, a high grade, potential direct shipping iron ore operation located in Nunavut Territory, Canada, and for general corporate purposes.

Closing of the additional subscription by Mitsubishi is currently expected to occur in March, 2007, and is subject to certain conditions, including but not limited to, receipt of all necessary securities regulatory approvals, including the approval of the Toronto Stock Exchange.

Baffinland is a mining exploration and development company focused on exploring and developing the iron ore deposits location on the Mary River Iron Ore Project in Northern Baffin Island, Nunavut.

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 proposed investment by Mitsubishi 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, market conditions and 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 regulatory risks, as well as 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, except as required by law.

The securities offered as described herein 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall 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 CEO (416) 814-3163 Email: info@baffinland.com Website: www.baffinland.com
    or
    The Equicom Group Andreas Curkovic Investor Relations (416) 815-0700 x 262