On January 11, the world's largest steelmaker Luxembourg-based ArcelorMittal announced that it has extended its C$550 million (US$555 million) offer to purchase all shares of Canadian miner Baffinland Iron Mines Corporation (Baffinland) until 11:59 p.m. on January 21, 2011, after its rival bidder Toronto, Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings, LP, sweetened and extended the deadline for its offer.
ArcelorMittal is offering C$1.40 (US$1.41) per Baffinland share to acquire 100 percent of the company.
Nanavut Iron added one exchange right per common share to its bid worth C$1.45 a share in cash for 60 percent of Baffinland. The company also extended its offer to 11:59 p.m. on January 25, 2011. The offer, which valued the company at C$570 million ($570 million) had been scheduled to expire on January 10.
In Nunavut Iron's bid, each exchange right would give shareholders 0.4 percent of a share purchase warrant. Each whole warrant would entitle the holder to purchase one common share at a price not less than C$1.40 (US$1.41).
As SteelOrbis previously reported, the Baffinland board previously backed ArcelotMittal's offer several times, against the hostile Nunavut Iron offer.
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities.