Baffinland secures credit facility to provide liquidity


    TORONTO, Aug. 23 /CNW/ - Baffinland Iron Mines Corporation ("Baffinland"
or the "Company") announced today that it has arranged a $21 million senior
secured credit facility from its corporate banker, the Bank of Nova Scotia, to
provide liquidity to the Company which was constrained due to the recent
illiquidity of asset-backed commercial paper.
    As previously reported, $43.8 million of the Company's $45.9 million in
cash and investments was invested in certain non-bank asset-backed commercial
paper R1 High A Notes (the "Investments") with three separate trusts with
maturity dates ranging from August 13 to August 30, 2007. On August 13, 2007,
Coventree Capital Group Inc. announced that due to market disruption it was
unable to meet its repayment obligations until its liquidity providers funded
such repayments.
    The non-revolving, six-month credit facility, primarily collateralized
with the outstanding Investments, will provide the Company with the ability to
drawdown up to $21 million immediately.
    "This credit facility provides us with sufficient cash to continue to
operate and meet our financial obligations while the longer-term liquidity
matter is being resolved in the marketplace", said Gordon A. McCreary,
President and Chief Executive Officer. "As a result of this expedited support
from the Bank of Nova Scotia, we are continuing to move forward with our

    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.

    This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, expected mineral resources, iron ore prices and
the feasibility of constructing and operating a direct-shipping iron ore mine
at the Company's Mary River project. While the Company considers these
assumptions to be reasonable based on information currently available to it,
they may prove to be incorrect. Forward looking-information is subject to
certain factors, including risks and uncertainties that could cause actual
results to differ materially from what is currently expected. These factors
include risks relating to exploration and development risks, risks relating to
the worldwide price of, demand for and supply of iron ore, financing and
liquidity risks and risks relating to the construction and operation of a mine
at the Company's Mary River project. You should not place undue importance on
forward-looking information and should not rely upon this information as of
any other date. While the Company may elect to, the Company is under no
obligation and does not undertake to update this information at any particular

For further information:

For further information: Please visit Baffinland's website at, email or contact: Gordon A. McCreary,
President and CEO, (416) 814-3163; Robert J. Chausse, Vice President and CFO,
(416) 814-3170; Andreas Curkovic, The Equicom Group, (416) 815-0700 ext. 262

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