Baffinland wird bald explodieren !

UPDATE 1-ArcelorMittal offers to buy Baffinland for C$433 mln

* Baffinland says ArcelorMittal to offer C$1.10/shr

* Offer at premium of 16 pct

* Baffinland urges shrholders to tender favour of offer

Nov 8 (Reuters) - Baffinland Iron Mines said ArcelorMittal, the world's largest steelmaker, has agreed to make an C$433 million offer for the Canadian miner.

Baffinland said the ArcelorMittal offer values the company at C$1.10 a share, a premium of 16 percent over the stock's Friday's closing.

Last month, Baffinland had urged its shareholders to reject a C$274 million bid from Nunavut Iron Ore Acquisitions, saying the offer undervalues its flagship Mary River project in Nunavut in the Canadian Arctic.

Baffinland has been looking for partners for its C$4 billion Mary River project for about two years. The project has reserves of about 365 million tons of ore grading an average of 65 percent iron, and about 500 million tons of ore resources.

Baffinland urged its shareholders to tender their shares in favor of the offer.

The company's largest shareholder, Resource Capital Funds, which owns about 23 percent stake in the company, and its directors and board members have agreed to tender all their common shares and warrants in favour of the agreement, Baffinland said in a statement.

Baffinland shares, which have gained nearly 70 percent in value since they received the offer from Nunavut, closed at 95 Candian cents Friday on the Toronto Stock Exchange.

(Reporting by Arnika Thakur in Bangalore; Editing by Unnikrishnan Nair) Keywords: BAFFINLAND ARCELORMITTAL/

(arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net)

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Copyright Thomson Reuters 2010. All rights reserved.

U.S.-controlled Nunavut Iron Ore Acquisition Inc. made a hostile bid for BIM in September. Since then, Luxembourg-based steelmaking giant ArcelorMittal has arrived on the scene as a white knight. Last week Arcelor upped its bid to $1.40 per share for all the Baffinland shares. Nunavut Iron Ore, which was set up solely to acquire Baffinland, immediately upped its own bid to $1.45, but for only 60% of the equity.

Wrangling continues before the OSC over a BIM poison pill. There are also reverberations from the fact that one of Nunavut’s employees had consulted for Baffinland shortly before the bid. Still, the broader significance of this deal surely lies in its meaning for Northern development.

BIM controls a huge iron ore deposit at Mary River in the middle of northern Baffin Island. The company reckons that it is the highest-grade undeveloped iron ore project in the world “that remains independently owned in a low-risk jurisdiction.” The problem is that it is way closer to the North Pole than to Toronto, where BIM is headquartered. It is also 1,000 kilometres from Nunavut’s capital, Iqaluit.

Desolate hardly describes the Mary River landscape, where the average annual temperature is -15C and activity is all but impossible in the permanent night of the winter months. The deposit was first discovered in the early 1960s, but was abandoned for almost 40 years. What made it potentially viable is the impact on markets of China and India, plus ever improving mining and transportation technology, which tends to be taken entirely for granted.

The development was projected in 2008 to take four years and cost around $4-billion. It will involve building a 140-km railroad south to a new all-season, deep-water port at Steensby Inlet, plus a fleet of icebreaker ore carriers. At the height of construction it will employ over 2,600 people. It will permanently employ around 450 at the mine and port to produce 18 million tonnes of iron ore a year for 21 years, with the prospect of further development beyond that.

For the rest of the article, please go to the National Post website: opinion.financialpost.com/2011/01/03/...al-help-for-the-north/



This entry was posted on Tuesday, January 11th, 2011 at 11:54 am and is filed under Aboriginal Mining, Canada Mining, Canadian Media Mining Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
       Baffinland Iron Mines Corporation
       Daniella Dimitrov
       Vice-Chair
       416-814-3172
       info@baffinland.com
       www.baffinland.com

       Drysdale Forstner Hamilton Public Affairs
       Bruce Drysdale or Gord Forstner
       416-206-0188

Source: Baffinland Iron Mines Corporation



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Date Sent: 1/13/2011 8:07:42 AM Powered by Q4 Web Systems

This is why the battle is ongoing for this junior mining company that has incredible potential. The bids have steadily risen after Europe-based steel behemoth ArcelorMittal entered into the bid. The price of Baffinland Iron Mines traded as high as CAD$1.58 on Wednesday, nearly double the initial bid price. And, by all estimates, the price required will continue to rise. ArcelorMittal has a battle chest of money available for higher bids. Nunavut Iron Ore has limited finances, but has said that it is seeking out cash-rich Chinese companies that are also hungry for iron resources to fuel the country’s massive economic engine.

Arbitragers have been trading the stock based on expected higher bids, and so far this has played out well. If you see bids like this surface and especially on smaller mining companies, then you can try to make money buying in and selling higher.

Or scope out small mining companies with vast resources. These companies will drive speculative trading in 2011 and beyond.

I expect there will be numerous other takeover deals similar to the example of Baffinland Iron Mines. .Mining is hot and there is a lot of money to be made.

Nunavut initiated joint Baffinland bid
TIM KILADZE
Globe and Mail Blog
Posted on Friday, January 14, 2011 12:36PM EST
0 comments Email  Print/License Decrease text size
Increase text size  It’s a turn of events few people saw coming. After duking it out for control of Baffinland Iron Mines (BIM-T1.540.021.32%), ArcelorMittal and Nunavut Iron Ore Acquisition Inc. came together for a joint offer that both companies view as a win-win.

So who extended the olive branch? Nunavut Iron Ore. It makes sense, too, because the two firms were starting to one-up each other at an accelerating pace, and both didn’t want the stakes to get much higher too quickly.

More related to this story
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•Quick facts about the Mary River project
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Streetwise - Selling Zellers? The joint offer has been in the works for the past few days, said Nunavut chairman Bruce Walter, who added that it was put together at an exhausting pace. He also noted that while the combined effort may surprise people on the outside of the deal because the two companies have scorned each other’s competing offers, the negotiations between the two management terms were actually quite cordial.

“All parties involved understand the difference between the way in which one engages in the takeover bid game and how you want to conduct yourself going forward,” Mr. Walter said.

He also said that the joint offer had been on his ‘menu’ of options for some time, and that no one playing the hostile takeover bid game can expect anything less than unique twists and turns.

But now he has to test that theory with shareholders who he said weren’t brought into the fold about the potential of a joint offer. Resource Capital Funds, Baffinland’s largest shareholder, had already agreed to tender its shares in a previous lock-up agreement that it signed with ArcelorMittal.

Shareholders have until Jan. 24 to tender.

The Board of Directors understands that Nunavut has advised Baffinland shareholders who have tendered to Nunavut's existing partial take-over bid (the "Partial Nunavut Offer") for 49.7% of Baffinland's outstanding common shares (excluding the 10.3% of the common shares owned by Nunavut) for (i) C$1.45 per common share which can be taken up, and (ii) if the minimum tender condition is met, one exchange right per common share which can be taken up, to withdraw their common shares and to tender them to the Joint Offer. The Board also understands that Nunavut has agreed with ArcelorMittal that it will not, except as required by law or by a regulatory authority, extend the Partial Nunavut Offer beyond January 25, 2011, amend the Partial Nunavut Offer or waive any conditions of such offer.

The recommendation of the Board of Directors is based on the reasons provided in previously filed Notices of Change to Baffinland's Directors' Circular, and on the following additional reasons:


--  The Joint Offer of C$1.50 per common share is for 100% of the common
   shares and 2007 Warrants and represents (i) a 36% premium to the
   original ArcelorMittal offer of $1.10 for all of the common shares, (ii)
   a 7% premium to the last amended ArcelorMittal Offer of $1.40 for all of
   the common shares, and (iii) an 88% premium to the original Nunavut
   offer of $0.80 per common share for all of the common shares other than
   the common shares owned by Nunavut at the time.

--  Nunavut's original offer to acquire all of the outstanding common shares
   of Baffinland was announced on September 22, 2010 and the original
   ArcelorMittal offer was announced on November 8, 2010. Since November 8,
   2010, the Board has not received any third-party acquisition proposals
   for Baffinland or been in discussions with any third-party regarding any
   acquisition proposal. However, the process overseen by the Board of
   Directors since September 22, 2010 has seen a total of eight (8) rounds
   of bidding by Nunavut and ArcelorMittal, inclusive of the current Joint
   Offer.

--  The Board of Directors has preserved the ability to respond to
   unsolicited superior proposals.

--  In light of the fact that Nunavut has (i) agreed with ArcelorMittal that
   it will not, except as required by law or by a regulatory authority,
   extend the Partial Nunavut Offer beyond January 25, 2011, amend the
   Partial Nunavut Offer or waive any conditions of such offer, and (ii)
   advised Baffinland shareholders to withdraw any common shares that have
   been tendered to the Partial Nunavut Offer, there is effectively only
   one outstanding offer.



In addition, in considering the Joint Offer, the Board of Directors, sought and received assurances from ArcelorMittal that, in joining as co-bidders with ArcelorMittal, Nunavut is responsible for bearing its pro rata share of the purchase price and all costs associated with (i) the Joint Offer, and (ii) upon successful completion of the Joint Offer, the development of the Mary River Project. The Board also notes that the Joint Notice of Variation and Extension, dated January 14, 2011, which was prepared by ArcelorMittal and Nunavut, contains disclosure to the same effect.

The Board also sought and received assurances that (i) for the purposes of determining Nunavut's proportionate amount of the total cost to take up and pay for common shares and 2007 Warrants under the Joint Offer, common shares held by Nunavut at the date of the Joint Offer are valued at the take up price per common share, being $1.50, and (ii) ArcelorMittal is not providing and has not agreed to provide any financial assistance or financial incentive to Nunavut or any of it affiliates, general partners or associates under the Joint Offer or the Joint Bid Agreement entered into between Nunavut and ArcelorMittal. The Board has also received advice from its legal counsel that, accordingly, Nunavut is receiving no collateral benefit as a shareholder of Baffinland in connection with the Joint Offer as prohibited under applicable Canadian securities laws.

A description of the reasons for the recommendation of the Board of Directors is set out in the Notice of Change to its Directors' Circular dated January 17, 2011 which will be filed on SEDAR (available at www.sedar.com) and mailed to Baffinland's securityholders as soon as practicable.

About Baffinland

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 common shares trade on the Toronto Stock Exchange under the trading symbol BIM.


Any questions and requests for assistance may also be directed to
Baffinland's Information Agent:

Phoenix Advisory Partners

Toll Free                              1-800-503-9445 (English or French)
Outside North America, Bankers and
Brokers Call Collect                   416-385-6020
Email:                                 contactus@phoenixadvisorypartners.com


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 assay results, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
       Baffinland Iron Mines Corporation
       Daniella Dimitrov
       Director and Vice Chair
       416-814-3172
       info@baffinland.com
       www.baffinland.com

       DFH Public Affairs
       416-206-0118

Source: Baffinland Iron Mines Corporation



Click Here for a complete listing of Baffinland press releases.

-------------------
To unsubscribe from this list please visit the email alert section of the Baffinland site.


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Date Sent: 1/17/2011 8:35:39 AM Powered by Q4 Web Systems