New owners put finishing touches on Mary River purchase

The Mary River iron ore project’s new owners finished up the protracted acquisition of its new property late last week as the old owners, the Baffinland Iron Mines Corp., delisted their company from the Toronto Stock Exchange.

The steel-making giant ArcelorMittal, Nunavut Iron Ore Acquisition Inc. and Baffinland announced March 25 that Arecelor has acquired all remaining outstanding shares of Baffinland.

Nunavut Iron Ore was founded in August by former Baffinland consultant Jowdat Waheed for the sole purpose of taking over Mary River.

Now it’s a done deal, after shareholders of Baffinland agreed to the buy-out March 22.

Under the terms of the arrangement, former Baffinland shareholders, other than dissenting shareholders, will receive from 10 cents to $1.50 per common share. Dissenting shareholders are entitled to receive “fair value” for their shares, as determined in accordance with the Business Corporations Act (Ontario).

The total value of the deal was about $443 million.

Baffinland will now delist its securities from the Toronto Stock Exchange.

ArcelorMittal spokesman Giles Read told Nunatsiaq News last year that his company supports the completion of a feasibility study on hauling ore from one Mary River deposit by road and the update of a second study on developing other deposits on the property.

Read also said the takeover wouldn’t affect training programs and “preferential employment opportunities” for Inuit workers from Baffin communities.

ArcelorMittal produced about eight per cent of the world’s steel in 2009, generating revenues of US$65.1 billion. It has operations in more than 60 countries.