Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

January 16, 2007 06:00 ET

Baffinland Iron Mines Corporation-Announces Financing

TORONTO, ONTARIO--(CCNMatthews - Jan. 16, 2007) -


Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) is pleased to announce that it has engaged Raymond James Ltd., on its own behalf and on behalf of a syndicate of agents to be formed in consultation with the Company (the "Agents"), for a proposed marketed offering (the "Offering") of units (the "Units"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one additional common share. Aggregate gross proceeds from the Offering are not expected to exceed $30,000,000, although the definitive pricing and other terms of the Offering, including the number and price of the Units to be offered and the terms and exercise price of the common share purchase warrants, will be determined in the context of the market, based on discussions between the Agents and the Company, upon the entering into of an agency agreement and the filing of a final prospectus.

The Units will be offered by way of a short form prospectus in each of the provinces of Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. A preliminary short form prospectus with respect to the Offering has been filed by the Company with the securities regulatory authorities in each of the provinces of Canada, other than Quebec.

The Company intends to use the net proceeds of the Offering 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 Offering 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).

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 Offering 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 risks relating to the proposed Offering, 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
    The Equicom Group
    Investor Relations
    Andreas Curkovic
    (416) 815-0700 x 262