November 21, 2008

Baffinland arranges equity financing for Mary River project

It is reported that the Toronto based mining company Baffinland Iron Mines Corp has arranged a USD 175 million equity financing, to be used mainly for exploration and development at its Mary River mining project in Nunavut.

As per report a syndicate of underwriters led by Raymond James Ltd. has agreed to buy 47,945,205 common shares of the company for USD 3.65 each. That's a slight discount to the market price for the stock just prior to a trading halt issued ahead of the announcement.

Baffinland Iron recently estimated it will cost USD 4.1 billion to develop the Mary River iron ore mine.

Mr Gordon McCreary CEO of Baffinland said that a feasibility study on the project shows the proposed open-pit mine would have a 20 year mine life, based on proven and probable reserves of about 365 million tonnes of iron ore.