NUNAVUT - Toronto-based BAFFINLAND IRON MINES has raise $16.0 million through non-brokered flow-through private placements. The company issued approximately 5.8 million shares priced at $2.75 each. The money will be used for further exploration at the company's Mary River direct shipping iron ore project.
Baffinland completed a scoping study of the Mary River project in May 2006. The study indicated that the deposit could be mined for 34 years and generate a pre-tax internal rate of return of 15%. The mine would yield 10 million tonnes of high-grade iron ore (66% Fe) for the European market. Projected cash flow over the life of the mine is $6.0 billion.
The capital cost of preparing the Mary River project for production is estimated to be $1.6 billion. Plans call for building an open pit mine, crushing-screening plant, railway system to Milne Inlet, and port facilities with storage. Basic engineering is to be complete in 2008. If the regulatory process is completed as well in 2008, startup of the project is anticipated in 2011.
An extensive library of cross-sections from Mary River is available at www.Baffinland.com.
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