The deadline for the C$590 million ($590 million) joint acquisition offer for Canadian miner Baffinland Iron Mines Corporation (Baffinland) filed by Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, has expired on January 24.
The offer sought all shares of the company for C$1.50 in cash per common share. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and and 30 percent of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
The board of directors of Baffinland reaffirmed on January 24 its recommendation for the acceptance of the offer by its shareholders.
Huge iron ore reserves
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, also valid for the joint offer.
Baffinland said on January 21 it had submitted a draft environmental impact study for the Mary River project and said it expects to have full permission in place by 2013.