Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

September 13, 2007 15:53 ET

Baffinland Announces Private Placement of Common and Flow-Through Shares

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2007) -


Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) announced today that it has entered into an agreement to issue, on a private placement basis 2,656,250 common shares at $3.20 per share for gross proceeds of approximately $8.5 million and 4,358,974 flow-through common shares at $3.90 per share for gross proceeds of approximately $17 million, for total gross proceeds of approximately $25.5 million.

The common and flow-through shares will be purchased on a bought-deal basis by a syndicate led by Raymond James Ltd., and including BMO Capital Markets, GMP Securities L.P., National Bank Financial Inc. and Loewen, Ondaatje, McCutcheon Limited. (the "Underwriters"). The Underwriters will also have the right to increase the size of the offering by up to an additional 468,750 common shares (for additional gross proceeds of up to approximately $1.5 million) and by up to an additional 769,230 flow-through shares (for additional gross proceeds of up to approximately $3 million), by giving notice to the Company at any time prior to 30 days following closing of the offering.

Closing of the private placement, which is currently expected to occur on or before September 27, 2007, is subject to certain conditions, including, but not limited to, the receipt of necessary approvals, including the approval of the Toronto Stock Exchange.

The proceeds of the private placement will be used to fund exploration at the Company's wholly-owned Mary River project and for general corporate purposes.

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 facts. Particularly, information about the expected closing of the private placement is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, the ability to obtain all necessary approvals to complete the proposed private placement. 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 closing of the private placement, exploration and development risks, risks relating to the worldwide price of, demand for and supply of iron ore, financing and liquidity risks 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 CEO
    (416) 814-3163
    Baffinland Iron Mines Corporation
    Robert J. Chausse
    Vice President and CFO
    (416) 814-3170
    The Equicom Group
    Andreas Curkovic
    (416) 815-0700 ext. 262