Nunavut raises offer for Baffinland

Finance

Publishing Date: 04 Jan 2011 11:47am GMT
Author: Mining Journal

Nunavut Iron Ore Acquisition Inc has increased its hostile offer for Canadian miner Baffinland Iron Ore Mines Co to above that of rival bidder Arcelor Mittal.

Despite the improved bid (now at C$1.46/share), Baffinland has again recommended shareholders reject the offer and back the most recent attempt by Arcelor Mittal.

Nunavut, a subsidiary of Australian company Iron Ore Holdings LP, is hoping to acquire a further 49.7% of Baffinland to increase its share in the company to 60%.

Luxembourg-based Arcelor Mittal late last month boosted its friendly bid for Baffinland to C$1.40/share, or C$551 million (US$550 million).

Baffinland said the Arcelor Mittal bid “remains superior to Nunavut’s coercive partial bid” as it “carries significant uncertainty”.

Nunavut’s latest offer continues a three-month battle for Toronto-based Baffinland, which owns the Mary River project on North Baffin Island in the Qikiqtani region.

The project has been estimated to contain reserves of 365Mt of iron ore in the three deposits that have been partially explored. Nine deposits in total have been identified, Baffinland has previously said.