advancing to production
100%-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada.
Message: Signs Facility for Environmental Bonding
| September 1, 2009 |
| Baffinland Signs Facility for Environmental Bonding |
| TORONTO, ONTARIO--(Marketwire - Sept. 1, 2009) - Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) is pleased to announce that it has entered into a definitive agreement regarding the previously announced environmental guarantee support facility that may earn conversion rights (the "Facility") with Resource Capital Fund IV L.P. ("RCF") in the amount of US$13 million, maturing on December 31, 2012. On August 31, 2009, the Company drew the equivalent of C$10.3 million, which proceeds have been used to cover an increase in financial security to C$16.5 million under the Company's surface rights land lease for its Mary River Project on Baffin Island, Nunavut. The increased financial security is required as a result of the significant amount of 2008 activity, including the Company's 113,217 tonne bulk sample, that took place at the Company's Mary River Project. As described previously, the total maximum number of common shares of the Company (the "Common Shares") issuable to RCF on the conversion of the Facility and the payment of all interest and fees in common shares may be greater than 10% of the total number of Common Shares currently outstanding (the "10% Threshold"). Pursuant to applicable Toronto Stock Exchange requirements and the terms of the Facility, the Company is required to obtain shareholder approval for issuances in excess of the 10% Threshold to RCF. The Company currently proposes to request majority disinterested shareholder approval for the issuance of the full amount of the Common Shares payable in connection with the Facility to RCF at its annual general and special meeting of shareholders which it currently expects to hold prior to April 15, 2010. For further detail on the Company's Mary River Project environmental bonding requirements, see the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2009 filed on SEDAR. 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. |
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