In a tame ending to high drama in the mining world the two suitors for Baffinland Iron Mines joined forces and presented a joint takeover bid for the company.
Both Nunavut Iron Ore and ArcelorMittal have been embroiled in a bargain war over the company which owns the Mary River iron ore project over the last four months.
After offer and counter offer being made in a synchronized dance pattern the two companies have now made a joint offer of Canadian $1.50 per common share for 100% of the outstanding common shares of Baffinland Iron Mines. This would give the company a value of Canadian $600 million.
And finally on January 17, 2011 the board of directors recommended the joint offer to their shareholders. The offer is open for Baffinland Iron Mines until 24 January. ArcelorMittal currently holds a 25% stake in the firm and Nunavut 10.35% as of now. If the deal goes through then they will own Baffinland 70- 30% respectively.
The 3 million tonnes per year iron ore mine at Mary River is at an advanced stage of exploration. The mining operation is slated to begin in 2014. The project has proven and probable reserves of 365 million tonnes grading more than 64% iron.