HIGHLIGHT...."The postconsolidated common shares in the capital of Baffinland are scheduled to begin trading on Tier 1 of TSX Venture Exchange Inc. under the stock symbol BIM on Friday, Feb. 6, 2004" ... Winzer
TODAYS NEWS RELEASE .....................
Glimmer gains shareholder approval for Baffinland RTO
2004-02-05 16:19 ET - News Release
Mr. Michael Zurowski reports
GLIMMER RESOURCES INC. ANNOUNCES SHARE CONSOLIDATION, NAME CHANGE TO BAFFINLAND IRON MINES CORPORATION AND CLOSING OF BUSINESS COMBINATION
Glimmer Resources has disclosed that at the special meetings of shareholders of Glimmer and Baffinland Iron Mines Ltd. (BIML) held in Toronto on Jan. 15, 2004, and Dec. 18, 2003, respectively, all items of business in respect of the previously announced business combination and related matters (as described in Glimmer's management proxy circular dated Dec. 16, 2003, and in the meeting materials delivered to BIML shareholders) were considered and unanimously approved by the shareholders of Glimmer and BIML, as applicable.
Effective today, Glimmer will change its name to Baffinland Iron Mines Corp. and the common shares in the capital of Glimmer will be consolidated on the basis of one Baffinland common share for every three Glimmer common shares. Pursuant to the business combination, BIML common shares will be exchanged for Baffinland common shares on the basis of four Baffinland common shares for every three BIML common shares, the effect of which will be a reverse takeover of Glimmer by Baffinland.
The postconsolidated common shares in the capital of Baffinland are scheduled to begin trading on Tier 1 of TSX Venture Exchange Inc. under the stock symbol BIM on Friday, Feb. 6, 2004. Glimmer has also completed two private placements raising gross proceeds totalling $5.5-million to further explore the Mary River deposits. Subsequent to the approval by Glimmer shareholders of the business combination and related matters, 6.25 million Baffinland common shares were issued by way of a private placement at a price of 40 cents per share, for gross proceeds of $2.5-million. In December, 2003, BIML raised gross proceeds of $3-million by way of a private placement offering of flow-through common shares at the equivalent of 60 cents per Baffinland share, representing an additional five million shares of Baffinland. As a result of the business combination and the private placements, Baffinland will have approximately 18.4 million common shares outstanding. Included in this total are 3,825,204 shares held by continuing directors, officer and insiders, which have been placed in escrow and will be released over an 18-month period.
Historical summary
Baffinland owns a 100-per-cent interest in five iron deposits located approximately 160 kilometres south of Mittimatalik (Pond Inlet), Nunavut, Canada. The iron deposits, discovered by Murray Watts and Ron Sheardown in 1962, were intensively explored from 1963 to 1965. Five high-grade iron deposits were identified with most of the work focused on the No. 1 deposit, including 3,319 metres of core drilling in 26 holes. Although some metallurgical testwork and occasional economic studies related to the Mary River deposits were done in the mid-1960s and the early 1970s, the property has essentially remained dormant since the initial period of exploration. The main exploration work consisted of tracing iron formation horizons by airborne and ground magnetometer surveys and geological mapping, followed by trench sampling of the five main deposits (No. 1, 2, 3, 3A and 4) and diamond drilling of the No.1 deposit. Other work consisted of the collection of a bulk sample, construction of three gravel airstrips and a 100-kilometre tote road between Mary River and Milne Inlet, topographic surveys, hydrographic surveys of Milne Inlet by the federal government, engineering studies of facilities and services, terminal/ship loading studies, an investigation into sources of hydroelectric power, and soil testing for road/railroad construction. Preliminary railroad location surveys, metallurgical testwork, marine terminal studies, and a project feasibility and cost estimate were also completed.
Current resources
The iron ore deposits at Mary River are high grade by world standards with the current indicated grade exceeding 67 per cent iron (Fe) for the No.1 deposit, higher than the range of 62 per cent to 66 per cent Fe reported by the larger Brazilian and Australian producers. The Mary River deposits are unique in that two principal iron oxides are present, hematite and magnetite. The No. 1 deposit is the largest iron deposit with a total strike length defined by outcrop and magnetic anomalies of about 3,800 metres and widths ranging between 100 to 200 metres. As currently delineated by drilling approximately 1,200 metres of strike length, the No. 1 deposit is estimated to contain an indicated resource of 116.7 million tonnes grading 68.3 per cent Fe, 0.8 per cent SiO2, 0.03 per cent S, 0.03 per cent P plus 26.9 million tonnes grading 62.8 per cent Fe, 3.8 per cent SiO2, 0.43 per cent S, 0.03 per cent P. The No.1 deposit remains open along strike and at depth. Surface sampling of the No. 2, 3, 3A and 4 deposits exhibits grades of approximately 67 per cent to 69 per cent Fe with low levels of deleterious elements.
The resource estimate was made by Watts, Griffis and McOuat Ltd. (WGM) in 1965 and conforms to Section 1.3 and Section 1.4 of National Instrument 43-101. A comparable estimate was prepared by Strathcona Mineral Services Ltd. The Strathcona estimate totals 140.7 million tonnes, which contains an indicated resource of 133.8 million tonnes grading 66.8 per cent Fe, 1.7 per cent SiO2 and 0.12 per cent S, and 6.9 million tonnes of internal waste. These estimates are discussed in the Strathcona report, "A Review of the Mary River Iron Ore Project, Baffin Island, Nunavut," dated December, 2003, which is available on Stockwatch SEDAR files and www.baffinland.com. The Strathcona report was prepared in accordance with National Instrument 43-101.
Proposed exploration program
Baffinland has initiated planning for a substantial field program at Mary River to commence in 2004, with the primary objective of expanding the resource base and completing analytical and metallurgical testing that conforms to current ISO standards for testing of iron ores. The current estimate of the cost of the phase 1 program including mobilization of fuel and supplies, establishment of a field camp, approximately 5,000 metres of diamond drilling, environmental and engineering studies is $4.5-million and the program is expected to commence in June, 2004. The program includes and significantly expands on the limited surface sampling program recommended by Strathcona in its report. Baffinland believes that diamond drilling is required to define and expand the indicated resource potential, the metallurgical characteristics of the iron ore deposit and its acceptance as a lump sale product to its logical, potential customers, the steel mills of europe and eastern seaboard of the United States. Due to the limited field season within the High Arctic, it will be important to acquire sufficient information to allow the company the ability to advance the project.
Phase 2 of this program, budgeted at $3.0-million, to include continued metallurgical testing and the positioning of fuel and supplies for continued drilling in 2005, is subject to available financing in 2004.
The directors of Baffinland will be Richard D. McCloskey, Gordon A. McCreary, John A. Lydall, Gordon Watts, Brian Acton, Graham Clow and Michael T. Zurowski.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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Good Luck to All
Winzer |
