Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

March 26, 2007 16:16 ET

Baffinland Iron Mines Corporation Announces Closing of Additional Investment by Mitsubishi Corporation

TORONTO, ONTARIO--(Marketwire - March 26, 2007) -

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Attention Business Editors:

Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) is pleased to announce that it has closed its previously announced private placement offering of 1,054,875 units (the "Units") at a price of $2.75 per Unit for aggregate gross proceeds of $2,900,906.25 with Mitsubishi Corporation ("Mitsubishi"). Each Unit is comprised 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 entitles the holder thereof 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 investment 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.

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 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