Welcome To The 300 Club HUB On AGORACOM
We may not make much money, but we sure have a lot of fun!
Message: ORE...Baffinland (BIM) Loan Guarantee by the Federal Republic of Germany???
| March 19, 2009 |
| Baffinland Eligible for Loan Guarantee by the Federal Republic of Germany |
| TORONTO, ONTARIO--(Marketwire - March 19, 2009) - Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) announced today that it has been advised by KfW IPEX-Bank GmbH ("KfW IPEX-Bank") that its wholly-owned Mary River Iron Ore Project ("the Project"), Baffin Island, Nunavut Territory, Canada, is eligible in principle for untied loan guarantees from the Federal Republic of Germany. The German Government supports projects which are of outstanding importance for the Federal Republic of Germany. These include in particular projects securing German imports of raw materials. An Interministerial Committee ("IMC") decides whether a project is eligible for coverage. The IMC is composed of the Federal Ministry of Economics and Labour, the Federal Ministry of Finance, the Federal Foreign Office and the Federal Ministry for Economic Cooperation and Development. PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprufungsgesellschaft ("PwC") experts attend the meetings of the IMC in an advisory capacity. KfW IPEX-Bank requested the German Government, through PwC, to confirm eligibility in principle for untied loan guarantee in the amount of US$1.2 billion, for cover of commercial and political risks (scope of cover: 90%). At this early stage, this amount of loan coverage is indicative only and is based on certain assumptions such as the negotiation of off-take contracts with German steel mills of at least 10 years duration for 40% of the annual output of 18 million tonnes per year. PwC has confirmed the Project's eligibility in principle and the preparedness of the German Government to analyze and evaluate the commercial risks. A formal application for an untied loan guarantee will be required in due course as soon as all relevant information on the structure of the Project is available. The final decision about such coverage will be taken following evaluation of the Project by assessing feasibility and risks. The Project due diligence will include an evaluation of the legal, economic, technical and environmental risks. KfW IPEX-Bank would arrange such cover for the Project . To date Baffinland has hosted site visits to Mary River by 26 representatives of global commercial banks, capital leasing organizations and government controlled import export banks. Gordon McCreary, President and CEO of Baffinland Iron Mines Corporation stated "In recognizing the importance of our project for the Federal Republic of Germany, we have further validation of the uniqueness of the Mary River deposits. We at Baffinland have long believed that our Mary River deposits are outstanding high quality iron ore deposits that will be developed, a view now shared by many informed people. To achieve our development objective, we will ultimately require coordinated participation of a large global banking syndicate. Key next steps for Baffinland include strategic partnering of the project and this confirmation of the importance of our project to the Federal Republic of Germany should assist our efforts in this regard." 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. |
Loading...
Loading...
New Message
Please
login
to post a reply