Despite being outbid by the world's largest steel company in its quest to acquire Vancouver's Baffinland Iron Ore Mines, private equity firm Energy & Minerals Group has yet to thrown in the towel, hinting Monday the fund is prepared to make a revised offer.

Nunavut Iron Ore Acquisition-the special subsidiary created by the fund specifically for the Baffinland bid-has extended its offer to purchase Baffinland at a price of Cdn 80-cents per share until 7 p.m. on December 2, 2010.

Last Friday the Ontario Securities Commission halted trading in any securities issued or to be issued under the Baffinland shareholder rights plan adopted in March 24, 2009. Nunavut Iron Ore had argued the rights plan blocked the right of Baffinland shareholders to decide for themselves whether to accept the Nunavut all-cash offer of C$247 million or ArcelorMittal's C$433 million all-cash bid.

Baffinland's largest shareholder, Resource Capital Funds, has already entered into a lock-up agreement with ArcelorMittal in which the fund will tender its 23% of Baffinland shares to the offer.

In a news release Monday, Nunavut Chairman Bruce Walter said "Nunavut Iron is gratified that the Commission agreed with our submissions and cease traded Baffinland's shareholders' rights plan. As a result, the rights plan will not stand as an impediment should we proceed with a revised offer to Baffinland's shareholders."

"Nunavut Iron is considering ArcelorMittal S.A.'s offer for Baffinland and the options available to Nunavut Iron with respect to its own offer," the company said.

The object of both companies' desires is the Mary River Property, which is believed to have a 20-year mine life and an average annual iron ore production of 18 million tonnes. The Nunavut-based property has 365 million tonnes of proven and probable reserves grading 64.7% iron and 52 million tonnes of measured and indicated resources grading 64.6% iron.

Baffinland said it has invested more than C$400 million in the property, located on Baffin Island.


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