Baffinland participation right with Mitsubishi expires
2007-10-19 07:11 MT - News Release
Mr. Gordon McCreary reports
BAFFINLAND ANNOUNCES MITSUBISHI'S PARTICIPATION RIGHT EXPIRES
Baffinland Iron Mines Corp.'s participation right offered to Mitsubishi Corporation's under its agreement with Mitsubishi dated Dec. 22, 2005, has expired.
Under the terms of the agreement, in order to have maintained its participation right, Mitsubishi was required to participate in the company's most recent securities offering of flow-through and non-flow-through shares, such that after giving effect to its participation, Mitsubishi would have held 5 per cent or more of the outstanding shares.
"With the completion of Baffinland's definitive feasibility study anticipated in December, 2007, and Mitsubishi's interest in further investment upon receipt of the DFS, Mitsubishi elected to not participate in our most recent private placement," said Gordon A. McCreary, president and chief executive officer of Baffinland. "Mitsubishi's investment perspective is of a long-term nature and we are looking forward to discussing its long-term investment objectives following the release of our DFS."
"Despite losing the participation right, Mitsubishi's supportive position as Baffinland's strategic investor will not change and we will remain strongly interested in our further involvement in Baffinland in the future. We will be looking forward to discussing the next opportunity of equity financing upon receiving the definitive feasibility study in the near future," said Iwao Toide, general manager, iron ore business unit of Mitsubishi.
We seek Safe Harbor.
