Nunavut Iron Ore Acquisition Inc. Increases Offer Price For Baffinland Iron Mines Corp. To $1.35 Per Share
Wednesday, 15 Dec 2010 07:54pm EST

Nunavut Iron Ore Acquisition Inc. (Nunavut Iron) announced that it has increased its Offer to purchase Common Shares of Baffinland Iron Mines Corp. from $0.80 to $1.35 in cash per Common Share and has extended its Offer until 7:00 p.m. (Toronto time) on December 30, 2010. Nunavut Iron's increased Offer price of $1.35 per Common Share represents a premium of approximately 23% to ArcelorMittal's offer of $1.10 per Common Share and also decreased the maximum number of Common Shares to be taken up and paid for under the Offer to the number of Common Shares which, together with any Common Shares owned by Nunavut Iron and its affiliates, constitutes 50.1% of the Common Shares outstanding on an in-the-money fully diluted basis. Upon Nunavut Iron's successful acquisition of voting control of Baffinland, Nunavut Iron intends to exercise commercially reasonable efforts to cause Baffinland to distribute to each then existing shareholder of Baffinland, other than Nunavut Iron and its affiliates, in respect of each then outstanding Common Share held thereby, a direct or indirect interest in a 2% gross revenue royalty, or an approximate financial equivalent, on the sale of iron ore from 100% of the probable reserves of Baffinland's Mary River property as at the date hereof.