On October 7, Canada-based Baffinland Iron Mines announced that it has rejected a CA$274 million (US$268.3 million) all-cash takeover offer from a newly-established unit of private investment firm Energy & Minerals Group, aimed at gaining access to Baffinland's Mary River iron ore project in Nunavut.
Baffinland said that the offer "significantly undervalues" the company, calling the Mary River project "quite possibly the best undeveloped iron ore deposit in the world."
As SteelOrbis previously reported, the new unit named Nunavut Iron Ore, which already holds a 15.3 percent stake in Baffinland, has offered the company CA$0.80 per share, representing a 43 percent premium to the September 21 ( the day before the offer) closing price of CA$0.56.
The Mary River project has reserves of about 365 million metric tons (mt) of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources.
Baffinland has been looking for partners for the CA$4 billion project for some months now, which is expected to produce 18 million mt per year.
Energy & Minerals Group, a US-based investment firm, manages over US$2 billion in investments in the energy and minerals sector.