Nunavut Iron Ore buys more Baffinland shares

NEW YORK (BestGrowthStock) – Nunavut Iron Ore Acquisition Inc said on Thursday it purchased 6,027,700 Baffinland Iron Mines Corp (BIM.TO: ) shares in its hostile takeover bid.

It said the purchases, through the Toronto Stock Exchange, the Alpha Market and the Pure Trading Market, represented about 1.6 percent of the outstanding common shares of Baffinland.

The highest price paid was C$1.29, with an average of C$1.2542. Nunavut said it has now acquired 15,330,900 shares since commencement of its offer.

Nunavut Iron, backed by a U.S. private equity firm, earlier raised its takeover bid by 69 percent as it wrestles steel giant ArcelorMittal (ISPA.AS: ) (MT.N: ) for Baffinland’s vast iron ore deposits.

Nunavut raised its offer to C$1.35 a share, easily topping a friendly C$1.10 per share offer from Arcelor, the world’s largest steelmaker.

Nunavut, a wholly owned subsidiary of Iron Ore Holdings LP, was incorporated in Canada in August specifically for the purpose of bidding for Baffinland. Parent Iron Ore Holdings LP was incorporated in the United States for the same purpose. Both are backed by private equity firm the Energy and Minerals Group.

Baffinland is a Toronto-based junior mining explorer that is sitting on enough iron ore to supply all of Europe from its Mary River project on Baffin Island in the infrastructure-poor Canadian Arctic territory of Nunavut.

(Reporting by Steve James; Editing by Phil Berlowitz)

Nunavut Iron Ore buys more Baffinland shares