Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

September 22, 2010 19:43 ET

Baffinland Responds to Unsolicited Take-Over Bid

TORONTO, ONTARIO--(Marketwire - Sept. 22, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") announced today that it has received an unsolicited take-over bid from Nunavut Iron Ore Acquisition Inc. (the "Offeror"), a corporation wholly-owned by Iron Ore Holdings, LP, to acquire all of the issued and outstanding common shares of the Company (other than common shares of the Company owned by the Offeror or any of its affiliates), together with the associated rights issued and outstanding under the shareholder rights plan of the Company, at a price of $0.80 in cash per common share (the "Offer"). An announcement containing the details of the Offer was released by the Offeror earlier today. The Offer is not a "permitted bid" under the Company's shareholder rights plan.

The board of directors of the Company have met and established a Special Committee of independent directors comprised of John Lydall (Chair), Grant Edey and Ronald S. Simkus to review the Offer and make recommendations to the Board in respect of the Offer and other alternatives available to the Company. The Special Committee will be advised by CIBC World Markets Inc. as financial advisors.

The Company has been focused on the exploration and development of iron ore deposits located on its 100%-owned Mary River Property. In connection with this and as previously disclosed, the Company has been pursuing strategic alternatives, and is in advanced stages of negotiations with one strategic party with respect to a potential transaction. However, there can be no assurance that these negotiations will result in a transaction.

The board of directors recommends that shareholders take no action in respect of the Offer pending completion of the Special Committee's review and receipt of the Board's recommendation in respect of the Offer.

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 may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about the Company's interpretation of its completed magnetic survey, including related statements about the planned release of additional assay results and metallurgical testing results, statements about the continuation of the Company's exploration program including plans relating to additional mapping, more comprehensive sampling, drilling on any of the properties comprising the Company's Mary River Project and metallurgical testing and statements about the Company's potential resources are forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices, the timing and amount of future exploration expenditures, the estimation of additional capital requirements, the availability of necessary financing and materials, the receipt of necessary regulatory approvals, the feasibility of constructing and operating a direct-shipping iron ore mine at the Company's Mary River project and assumptions with respect to environmental risks, title disputes or claims, weather conditions and other similar matters. 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 inherent in the exploration for and development of mineral deposits, risks relating to changes in iron ore prices and changes in the worldwide demand for and supply of iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River Property including access and supply risks, reliance on key personnel, construction and operational risks inherent in the conduct of mining activities, regulatory risks, including risks relating to the acquisition of necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all, environmental risks and insurance risks.

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.

Contact Information

  • Baffinland Iron Mines Corporation
    Daniella Dimitrov
    Vice-Chair
    416-814-3172
    info@baffinland.com
    www.baffinland.com
    or
    Drysdale Forstner Hamilton Public Affairs
    Bruce Drysdale or Gord Forstner
    416-206-0118